Richmond Fed President Thomas Barkin expressed a cautiously optimistic outlook during remarks today, highlighting economic growth upside while noting inflation risks tied to labor market strength.
“How economic policy uncertainty resolves will matter. But, with what we know today, I expect more upside than downside in terms of growth,” he stated.
Barkin also flagged that hiring trends could add upward pressure on inflation if the job market strengthens further.
Barkin noted that financial markets appear more aligned with Fed’s projected slower pace of interest rate cuts this year, adding that there seems to be broader acceptance of persistently higher long-term interest rates.
