Richmond Fed President Thomas Barkin said in a podcast that “while the average (inflation) has dropped, the median has still stayed high”.
“That’s because the average has been distorted by falling prices for a few goods, like used cars, that escalated unsustainably during the pandemic,” he said.
“We have seen three good months on the inflation prints. I’d like to see them continue. Is inflation calming? That’s really the core question for this year,” he said.
“I think underneath that, I want to understand the labor market. Is it cooling? What’s happening to wages? What’s happened to employment?” he added. “Underneath that, I want to understand what’s happening to the broader demand, particular for companies who may or may not be thinking about increasing prices.
