Richmond Fed Pres Barkin is speaking and says:
- Inflation data this year is disappointing. Job is not done yet
- Confident that current restrictive level of rate can cure demand enough to bring inflation to target.
- Don't see economy overheating, but Fed knows how to respond if it does.
- Data whiplash confirms value of Fed being deliberate
- Given a strong labor market, Fed has time to gain confidence it needs to be sure inflation will fall.
- Businesses are still looking to raise prices if they can, risk is shelter and services keeps headline index above target.
- Businesses have more courage to use price as a lever
- Fed has more time to gain confidence inflation is moving toward 2%
- Demand remains robust
The idea that it just needs more time, is the Feds position. Barkins comments do not foresee a hike, but a cut is still a ways away
