Fed's Barkin: this week's rate guidance a balancing act between inflation fighting, protecting economy
|Richmond Fed President and FOMC member Thomas Barkin said on Friday that the interest rate path laid out by the Fed this week is a balancing act between fighting inflation and managing uncertainty around the post-pandemic economic recovery, reported Reuters. The Fed could move faster with half-point rate hikes if inflation expectations become unanchored, Barkin continued, though he noted that, so far, that does not seem to be the case. Barkin said that the rate path laid out this week should not lead to "economic decline", but instead represents a return to more normal conditions. US inflation and employment are still both being "heavily influenced" by pandemic effects, Barkin said, and it will take time to understand the new post-pandemic economy.
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.