Richmond Fed President Thomas Barkin expressed a cautious stance on the prospect of Fed starting to cut interest rates in the near future, citing ongoing inflation pressures as a primary concern.
In an interview with CNBC, Barkin emphasized the need for inflation to normalize before considering adjustments to the interest rate policy. “I’m still hopeful inflation is going to come down and if inflation normalizes then it makes the case for why you want to normalize rates, but to me it starts with inflation,” Barkin stated
Barkin highlighted continued wage and inflation pressures, referencing a recent report indicating high inflation levels. While he noted some stabilization in goods inflation, Barkin pointed out that inflation in the services sector remains a challenge.
“I still see wage pressures, I still see inflation pressures…we just had a high inflation report yesterday… On the goods side inflation is settling. On the services side, not so much,” he elaborated.
