Richmond Fed’s Barkin Says Inflation Risks Remain High, Urges Caution on Monetary Policy
JH Kim
Summary
- Thomas Barkin, president of the Richmond Fed, said inflation is the biggest risk facing the Federal Reserve and that monetary policy should be managed cautiously.
- Barkin said the US economy has been “remarkably stable,” citing solid consumer spending, corporate earnings, and healthy loan demand.
- He said cost pressures are emerging across businesses and many companies plan to pass them on to consumer prices, underscoring that inflation risks remain elevated.
Forecast Trend Report by Period
Thomas Barkin, president of the Federal Reserve Bank of Richmond, said inflation remains the biggest risk to the Federal Reserve’s dual mandate and that monetary policy should be handled cautiously.
Walter Bloomberg reported on November 9 that Barkin described the US economy as “remarkably stable,” citing solid consumer spending, corporate earnings and healthy loan demand.
Still, cost pressures are building across businesses, and many companies plan to pass those higher costs on to consumers.
Barkin also said layoffs have remained limited even as consumer sentiment stays weak.
Given those conditions, inflation risks remain high and the Fed should adjust monetary policy carefully, he added.
JH Kim
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