Fed's Barkin Sees No Wage Inflation, Eases Rate Hike Pressure

Thomas Barkin, president of the Federal Reserve Bank of Richmond, has stated that there is currently no wage inflation in the US economy. This assessment comes as the nation's inflation rate remains above the central bank's 2% target.

Barkin's comments suggest a reduced pressure for immediate interest rate hikes by the Federal Reserve. Market pricing reflects this shift, with the probability of a hike by the September 2026 meeting now at 36%, down from 44% in the past 24 hours.

The likelihood of a rate hike by the October 2026 meeting remains stable at 50.5%, indicating ongoing uncertainty about the Federal Reserve's next moves.