Fed’s Barkin says central bank will do what it takes to lower inflation
Summary
- Richmond Federal Reserve president says process to lower inflation will likely be uneven
Federal Reserve Bank of Richmond President Thomas Barkin said Tuesday that the U.S. central bank must act to lower high levels of inflation, but that he’s unsure how long that process could take.
“We’re committed to returning inflation to our 2% target and we’ll do what it takes to get there," Mr. Barkin said in public remarks. But he added, “I don’t expect inflation to come down immediately or suddenly or even predictably."
Mr. Barkin, who doesn’t currently have a vote on the rate-setting Federal Open Market Committee, didn’t comment on what he’d like to see the central bank do at its September policy meeting. Markets are mulling a central bank rate rise of between 0.5 and 0.75 percentage point as the Fed officials seek to lower the highest levels of inflation seen in 40 years.
Mr. Barkin said raising rates could help lower demand and bring it into better balance with supply chains, which appear to be healing from disruptions that struck during the height of the coronavirus pandemic. He said monetary policy will need to be pushed into territory that will create restraint for growth.
Mr. Barkin also said that based on his interactions with businesses in his district he doesn’t believe the U.S. is in recession.
This story has been published from a wire agency feed without modifications to the text
