Richmond Fed President Thomas Barkin said yesterday that “we are in the middle of a temporary adjustment cycle during which workers will return to the workplace and schools open and fiscal payments expire and suppliers catch up with demand.” Near-term inflation pressure is expected to “ease as we go into the fourth quarter,”
“I think the last 30 years of relative price stability has got to outweigh a few months of pressure, but one can never be too careful,” Barkin added. “That is why the Fed has started the process of discussing normalization” of its policy stance.”
