Barkin sees interest rate hikes ahead, but at a gradual pace
In a CNBC interview, the policymaker expressed concern over inflation and said monetary policy will need to adjust.
TL;DR
- Richmond Fed President Thomas Barkin expects further interest rate hikes.
- He expressed concern over high inflation and the need for monetary policy adjustment.
- Barkin suggested a gradual pace for rate increases, considering economic uncertainties and data.
- He believes current policy is near a neutral rate.
- Inflation is identified as the most significant risk.
- Artificial intelligence is seen as a source of current price pressures but may ease inflation long-term.
- Markets are pricing in a high probability of a December rate hike and another in 2027.