Fed's Barkin: I expect upcoming PCE will show a further decline

Federal Reserve (Fed) Bank of Richmond President Thomas Barkin cast his bets on another decline in Personal Consumption Expenditure (PCE) inflation later this week, noting that the Fed has made singificant progress on inflation. Despite the overall upbeat tone from the Fed policymaker, Barkin was quick to note that a "wait and see" approach is still necessary in the face of policy uncertainty.

Key highlights

I expect upcoming PCE will show a further decline, the Fed has made a lot of progress.

Policy should remain modestly restrictive until there is more confidence inflation will return to the target.

Uncertainty argues for caution in the last stages of the inflation fight.

We will take a wait-and-see approach about how coming policy changes impact the economy.

The economy is in a good place.