Fed’s Barkin warns of risks to U.S. inflation and jobs
Richmond Federal Reserve President Tom Barkin said on January 6 that U.S. monetary policy will need to be “finely tuned” to incoming data due to risks to both the Fed’s inflation and unemployment goals.
Speaking to the Raleigh Chamber of Commerce, Barkin noted that unemployment remains historically low but has slightly risen, while inflation is still above target after nearly five years. He emphasized the delicate balance policymakers face: preventing labor market deterioration while keeping inflation expectations in check, News.Az reports, citing Reuters.
Barkin said interest rates are currently “within the range of estimates of neutral” and highlighted both downside risks—narrow job growth in limited industries—and upside potential from strong consumer spending, real wage growth, and corporate earnings. He stressed that the economy remains resilient despite recent policy uncertainties and global shifts.
Similar news
