- Analytics
- News and Tools
- Market News
- Fed's Barkin: When we get to neutral, we can decide whether to put brakes on economy depending on inflation
Fed's Barkin: When we get to neutral, we can decide whether to put brakes on economy depending on inflation
Federal Reserve Bank of Richmond President Thomas Barkin said on Tuesday that once the Fed has gotten interest rates back to neutral, it can then decide whether it needs to put brakes on the economy (i.e. by further lifting interest rates into restrictive territory), depending on the level of inflation, reported Reuters. The Fed's policy path will not necessarily cause a recession, Barkin noted.
Barkin noted Fed Chair Jerome Powell's comments that 50 bps rate hikes are on the table for upcoming meetings and said that the Fed needs to get inflation under control, calling it high, persistent and broad-based. Getting inflation closer to the Fed's goal creates certainty that enables growth and supports maximum employment, he commented.
Demand in the US economy is strong and looks set to remain robust, he continued, driven by healthy business and personal balance sheets. Moreover, a number of pandemic-era inflation pressures will eventually settle, Barkin notes, adding that rising borrowing rates will dampen investment levels and spending on interest rate-sensitive items like houses and cars.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
