Fed’s Barkin: Inflation is coming down

Pablo Piovano FXStreet

Richmond Federal Reserve President Thomas Barkin remarked on Wednesday that December’s US inflation data suggests price pressures are continuing to ease. His comments came after a government report revealed that a key underlying measure of price increases had slowed during the month.

Key Quotes

Inflation is coming down towards 2% target

Says he can see paths where inflation is sticky or continues to progress towards target

Says he was encouraged by the unemployment rate in December

Seems the job market has stabilized

Not much to support arguments that the economy is growing weaker

Says he is not concerned about overheating economy right now; demand is solid but not booming

Long rates right now are consistent with early 2000s, which was not a restrictive time for business

Says he has not seen anything in long rates that would influence Fed policy at this point

Regarding incoming Trump administration's policies, the direction of travel may be clear on things like tariffs but the details are not

Businesses generally saying that price-setting behavior is moving to pre-pandemic patterns

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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