More remarks from Federal Reserve Bank of Richmond President Thomas Barkin. He is speaking (and taking questions) on the economy before the Risk Management Association.
- Federal Reserve is still a "good way away" from its 2% inflation target
- Will not prejudge the July meeting
- Would support rate cuts when there is conviction inflation is heading down
- The question of how much slack is needed to lower inflation is 'the fundamental question' the Fed needs to dig into
- there are many pandemic-era forces still countering the FOMC tightening, including excess savings, housing and asset wealth, fiscal spending
- it does seem that demand is weakening
While Barking says he won't be prejudging the July meeting it sure sounds like he is on a further rate hike path.
Earlier:
