Richmond Fed Barkin (non voting) is speaking and says:
- Is "comfortable doing more" on interest rates if the coming data doesn't confirm a story that slowing demand is returning inflation to the 2% target.
- Believes higher rates may create the risk of a more significant slowdown, but the experience of the 70s shows the Fed should not back off its inflation fight too soon.
- The 2% target has served the Fed well for a generation.
- Inflation has proved "stubbornly persistent," and he is still looking to be convinced that weakening demand will control it.
The comments are consistent with the Fed decision/statement. His focus is on the demand side of the equation To robust of an economy is not good for the core inflationary trends which remain elevated.