Richmond Fed President Thomas Barkin told Bloomberg TV yesterday he’s looking at both a 25bps and a 50bps rate hike at the May FOMC meeting.
“I think the question — and we will make this decision when we get to the meeting in May — is how strong does the economy still look in terms of its ability to take rate increases and how high is inflation persisting. I’m looking at both of those and we’ll make our call in May,” he said.
Barkin also said it might take interest rates above neural to bring down inflation. “I think there is a real chance that is true,” he said. “As we get closer to neutral we can make that call.”
