In a dual appearance at an event in New Orleans overnight, Richmond Fed President Thomas Barkin and Atlanta Fed President Raphael Bostic provided insights into the Federal Reserve’s ongoing efforts to tame inflation.
Bostic expressed confidence in the current policy stance, which it “likely sufficiently restrictive”, predicting that it should be enough to curb inflationary pressures, albeit with potential challenges ahead. “Inflation is going to get to 2%,” he assured, committing to maintaining a restrictive policy until that target is firmly within sight.
Barkin focused on the anticipated impacts of Fed’s policies, noting that “we are still not seeing the full effects of policy”. He forecasted an economic downturn as necessary for achieving the Fed’s targets: “I believe there’s a slowdown coming. I believe we’re going to need that slowdown, because I think that’s what it’s going to take to convince price-setters the days of pricing power are over.”
