- Analytics
- News and Tools
- Market News
- Fed's Barkin: Higher rates may create risk of more significant slowdown
Fed's Barkin: Higher rates may create risk of more significant slowdown
Thomas Barkin, president of the Federal Reserve Bank of Richmond, acknowledged on Friday that raising rates further could create the risk of a more significant slowdown in the economy, per Reuters. "The ’70s provides a clear lesson: If you back off inflation too soon, inflation comes back stronger, requiring the Fed to do even more, with even more damage," Barkin further elaborated.
Key takeaways
"Comfortable doing more on interest rates if coming data doesn't confirm a story that slowing demand is returning inflation to the 2% target."
"2% target has served the Fed well for a generation."
"Inflation has proved stubbornly persistent, still looking to be convinced that weakening demand will control it."
"A question whether inflation can settle while higher-income consumers continue spending and the labor market remains robust."
Market reaction
The US Dollar Index clings to small recovery gains at 102.20 after these comments.
© 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
