Richmond Fed President Thomas Barkin said yesterday, “I definitely see signs of softening” in the economy, with evidence “most pronounced in lower income households”.
“I expect inflation to come down but not immediately, not suddenly, and not predictably,” he said. “My expectations are it will be a slower path rather than an immediate path down to 2%.”
Barkin also said he’s open to a 50bps or 75bps hike in July. “I am one of the guys who like the option value of deciding the week of the meeting as opposed to two weeks before the meeting. But I thought Jay’s (Fed Chair Jerome Powell) guidance the last time was very sound,” he added.
