Richmond Fed President Thomas Barkin expressed a cautious stance yesterday, indicating it’s “too early to know if another rate increase would be needed this year.”
He further elaborated on the need for a wait-and-see approach, suggesting, “We have time to see if we’ve done enough or whether there’s more work to do.”
“The path forward depends on whether we can convince ourselves inflationary pressures are behind us or whether we see them persistent.” Alongside inflation, Barkin pinpointed the labor market as a pivotal area of focus.
Addressing the recent surge in Treasury yields, Barkin attributed it to an abundant fiscal issuance, indicating, “There’s a lot of fiscal issuance out there. That’s creating a lot of supply.” He also acknowledged the role of recent strong economic data in pushing the yields higher.