Fed's Barkin: Slower rate hikes, for longer and maybe higher
Reuters has reported that Richmond Federal Reserve Bank President Thomas Barkin on Monday said he supports smaller interest-rate hikes ahead as the central bank moves to bring down too-high inflation.
"I'm very supportive of the path that is slower, probably longer and potentially higher," Barkin said in an interview with Bloomberg TV, though he declined to say how high he believes rates will need to go.
The Fed "will do what we need to do" to get inflation under control, he said.
Key quotes
Our foot is off the gas.
I'm supportive of a path that is slower, longer and potentially higher for rates.
Inflation has been stubborner than would like.
If inflation stays elevated, Fed needs to do more.
It's helpful to be somewhat more cautious.
Moving a little slower is better risk management.
Inflation expectations seem to have stayed stable.
If inflation stays high, will keep moving rates up.
Fed will do what we need to do.
I'm focused on bringing down inflation.
Don't want to do damage you don't have to do.
US Dollar update
The US Dollar is higher on the back foot amid a global risk-off start to the week. Major market averages opened trading at the start of this week lower due to the protests in China over COVID lockdowns bringing some selling pressure to global equities. DXY is up 0.57% to 106.66.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
