Federal Reserve official Thomas Barkin said it remains an “open question” whether the current level of interest rates is high enough to bring inflation under control. He also said he is unsure whether he would have voted with the three regional Fed presidents who backed a rate hike this week. In an interview on Friday, Barkin said there is a solid case for keeping policy tight and reversing part of last year’s rate cuts. At the same time, he pointed to softer inflation data in June and said policymakers still have time before the next meeting to judge whether the current stance is appropriate. Barkin will not vote on interest-rate decisions until next year. He also voiced doubt over whether the labor market has materially strengthened, saying it does not feel very tight, and added that uneven price pass-through across the economy makes it hard to tell how much inflation remains.
BlockBeats reported on Aug. 1 that Federal Reserve official Thomas Barkin said it is still an “open question” whether the Fed’s current interest-rate setting is high enough to restrain inflation.
He also said he is not sure whether he would have voted the same way as the other three regional Fed presidents who supported a rate increase this week.
In an interview on Friday, Barkin said, “I think there is certainly a strong case for tightening policy and taking back some of last year’s rate cuts.”
He also said that, given the cooling seen in June inflation data, “I think you can also make the case ... that there is time before the next meeting to judge whether the current policy stance is appropriate.”
According to the report, Barkin will not take part in voting on interest-rate decisions until next year.
Beyond the rate debate, Barkin expressed doubt about whether the labor market has strengthened in a meaningful way. “It doesn’t feel like the labor market is very tight,” he said.
He added that price increases are not passing through the economy evenly, which makes it difficult to determine how much inflation is still left in the system.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
