Richmond Fed President Barkin Warns of Persistent Inflationary Pressure
Richmond Fed President Tom Barkin warned that price pressures could become persistent, emphasizing commitment to the 2 percent target.
Richmond Federal Reserve Bank President Tom Barkin warned that high inflationary pressures could become persistent, reiterating their determination to bring inflation back to the 2 percent target.
Course of Inflationary Pressures
Richmond Federal Reserve Bank President Tom Barkin stated that it may take time for the impact of inflationary shocks to subside. Barkin drew attention to the risk that persistently high price pressures could become permanent.
Interest Rate Steps and Tightening
Making assessments regarding the economy and monetary policy, Barkin stated that the U.S. central bank's interest rate hike last week will contribute to slowing inflation. However, the official refrained from signaling whether additional tightening will be needed.
Supply Shocks and Expectations
The Fed official noted that supply shocks are no longer one-off or temporary developments, leading to persistent price pressures throughout the economy. Barkin emphasized that current high inflation levels risk affecting future inflation expectations.