Thomas Barkin, the Richmond Federal Reserve Chief, addressed uncertainties surrounding inflation and labor market trends during an event hosted by the Money Marketeers of New York University on Thursday. Barkin emphasized that policymakers still have time to determine if additional measures are needed to control inflation.
Barkin also advocated for maintaining the benchmark interest rate steady, citing unpredictability in demand and inflation due to ongoing labor shortages and shifts in job preferences following the pandemic. He suggested that insights into these issues could be gleaned from closely observing labor market trends.
In a broader economic context, Barkin acknowledged the potential impact of previous rate hikes on the economy, anticipating that these could lead to future tightening. However, he noted that it was too early to determine whether another rate hike would be necessary this year.
During an interview with Bloomberg Television on Thursday, Barkin highlighted potential economic uncertainties that could arise from a possible government shutdown later this year. Despite these uncertainties, he reiterated the importance of patience in deciding on further policy measures, emphasizing the need for a careful assessment of economic indicators before taking action.
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