Fed's Barkin on Inflation and Interest Rates

Federal Reserve Bank of Richmond President Tom Barkin emphasized the importance of a cautious approach to interest rates in light of ongoing inflation concerns. Speaking at the Rotary Club of Richmond, Barkin highlighted the complexities of navigating current economic uncertainties, including tariffs, geopolitical risks, and labor shortages.

Barkin noted that while inflation has decreased from its peak, the unpredictable nature of new trade policies and structural challenges such as an aging population and rising deficits could exert long-term inflationary pressures. He stressed the need for a "modestly restrictive" stance on interest rates until more definitive progress is observed.