Richmond Fed President Tom Barkin warned that inflation pressures remain persistent, with recent data showing signs of renewed pricing power among suppliers.
Speaking at an event in Baltimore, Barkin noted that many firms—still emboldened by the inflation surge of the past two years—are attempting to pass on rising costs, including those tied to tariffs. However, he cautioned that consumers, fatigued by prolonged inflation, may push back. “You’ve got consumers who are exhausted by inflation, who are already trading down,” he said.
Barkin’s comments also touched on the institutional integrity of the Fed amid speculation surrounding Fed Chair Jerome Powell’s future. With Powell’s term set to expire in May next year, US President Donald Trump is widely expected to nominate a more dovish successor.
Barkin emphasized the importance of policy independence, saying he hoped any new appointee would “try to decide the best policy for the country.” He added that rate-setting decisions aren’t necessarily driven by the Fed chair alone.
