Barkin: US Economy Firming, Inflation Not Limited to Energy, Tariff Shocks
US economic conditions are firming, according to Richmond Fed President Tom Barkin. He made this statement on Tuesday during a speech prepared for delivery to the CFA Society Baltimore.
Barkin emphasized that consumer spending and other sectors beyond artificial intelligence are contributing to the economy's strength. This focus on inflation is why the Federal Reserve raised interest rates last week, he said.
The quarter-percentage-point hike will help bring inflation back in line with the Fed's 2% target, Barkin stated. He noted that the risks of inflation outweigh those of maximum employment, which is why the rate increase was necessary.
Barkin acknowledged that additional hikes may be required to control inflation but declined to speculate on how many more increases might be needed.