Fed's Barkin: Not much reason to stop raising rates if inflation keeps escalating
|"We need to raise rates as fast as feasible but you don't want to break things," Federal Reserve Bank of Richmond President Thomas Barkin said on Tuesday, as reported by Reuters.
Additional takeaways
"Goods demand should come back to something like normal."
"Services inflation interacts a lot with labor market."
If inflation keeps escalating, not much reason to stop raising rates."
"Our difficult task is there could be a couple of strong inflation readings interspersed with weak ones."
"I ask myself if we have real rates where we need them to have impact on the US economy we need to."
"Urgency is high on getting inflation down."
"Hard to put a timetable on when inflation will get back to 2%."
"Tweaking balance sheet reduction could be sensible but it's down the road."
"I am still sceptical on the need for central bank digital currency."
Market reaction
The US Dollar Index recovered modestly after these comments and was last seen posting small daily losses at 104.30.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.