In an interview with the Financial Times late on Monday, Thomas Barkin, president of the Federal Reserve Bank of Richmond, said that “if inflation persists, or god forbid accelerates, there is no bar in my mind for further rate hikes“.
Additional comments
“I would advocate a ‘constant’ approach that would ‘lessen the damage of any possible overcorrection’.
“It does not seem obvious to me that there is a challenge for financial stability by having a path of higher rates… I don’t see the urgency of making a different decision because of the risks to financial stability.”
“There is a plausible story that demand is going to drop significantly due to lessening fiscal stimulus, eroding personal balance sheets, lagged effects of rate movements, credit crunch, and cooling demand not soon to have a similar effect on inflation.”
“I’m still trying to convince myself that this story is going to come true.“.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
