Barkin: US Economy Firming, Inflation Risks Outweigh Employment Concerns

Richmond Fed President Tom Barkin said on Tuesday that US economic conditions are firming, with continued consumer spending and strength beyond artificial intelligence driving the Federal Reserve's focus on inflation.

Barkin emphasized that the risks to inflation outweigh the risks to maximum employment, which is why the Fed raised interest rates last week. The rate hike will help restore inflation to the 2% target.

The Fed's decision was met with anticipation of more increases, and Barkin hinted at additional hikes being required in the future, but stopped short of giving a specific number.