Richmond Fed Bank President Thomas Barkin said yesterday, “the closer that inflation comes back to target levels, the easier it will be to normalize rates at a measured pace,”
“But were inflation to remain elevated and broad-based, we would need to take on normalization more aggressively, as we have successfully done in the past,” he added.
Barkin also said labor shortage is a “long lasting phenomenon”, with “baby boomers retiring” and “immigration slowing”. Officials may need to accept that labor force participation is “stagnant”.
