Richmond Fed President Thomas Barkin said yesterday, “the best short-term path for us is to move rapidly to the neutral range and then test whether pandemic-era inflation pressures are easing, and how persistent inflation has become. If necessary, we can move further.”
He added that the actions to combat inflation doesn’t “necessarily require a hard landing.” In fact, “it might help avoid one by convincing individuals and firms that the Fed is committed to our target, thereby cementing inflation expectations.”
Barkin also said that the Fed needs to be “crystal clear that a growing economy requires stable prices, and that we will remain committed to addressing inflationary gusts.”
