Richmond Fed Barkin (non voting) is speaking and says:
- Is “comfortable doing more” on interest rates if the coming data doesn’t confirm a story that slowing demand is returning inflation to the 2% target.
- Believes higher rates may create the risk of a more significant slowdown, but the experience of the 70s shows the Fed should not back off its inflation fight too soon.
- The 2% target has served the Fed well for a generation.
- Inflation has proved “stubbornly persistent,” and he is still looking to be convinced that weakening demand will control it.The comments are consistent with the Fed decision/statement. His focus is on the demand side of the equation To robust of an economy is not good for the core inflationary trends which remain elevated.
This article was written by Greg Michalowski at www.forexlive.com. Source