More from Richmond Fed Pres Barkin: Still feels like weight of risk is toward inflation

More from Richmond Fed Pres Barkin:

  • Still feels like weight of risk is toward inflation.
  • The metrics of where neutral rate is has moved up, but feels like current policy is restrictive
  • At this point willing to believe that current rates are restrictive enough.
  • Hear strongly from business contacts that the labor market is normalizing though some sectors that fell behind in hiring during the pandemic are still catching up.
  • GDP growth still seems strong, focused attention now on job market
  • Recent data makes you think less optimistically about how quickly inflation gets under control. It is a stubborn road
  • Takes a while to corral price setters to think they don’t have a chance.
  • Have not yet seen evidence that inflation is on track.
  • Tend to imagine the Fed need to take some edge off the demand to finish inflation fight, though some help from supply-side is still possible

This article was written by Greg Michalowski at www.forexlive.com. Source