Federal Reserve Official Highlights Economic Uncertainties

Federal Reserve Bank of Richmond President Tom Barkin addressed the growing concerns over recession risks signaled by the bond market during his speech at the Council on Foreign Relations on Tuesday.

Driving in the Fog: The Challenge of Economic Forecasting

"We are all driving in the fog," Barkin remarked, underscoring the difficulty of navigating the current economic landscape. Despite stable current data, the uncertainty surrounding future policies, particularly those related to tariffs and trade, poses significant challenges to accurate economic forecasting.

Tariffs and Trade: A Potential Inflationary Threat

Adding to the concerns, Barkin pointed out the potential inflationary effects of the new tariffs introduced by President Donald Trump, further complicating the economic outlook.