Fed's Barkin: There will be price pressure in spring given pent-up demand

Eren Sengezer FXStreet

Richmond Federal Reserve President Thomas Barkin told Bloomberg TV on Monday that they expect to see price pressures in spring given the pent-up demand and excess savings, as reported by Reuters.

"The demand for goods has put some manufacturers behind the curve," Barkin further added. Regarding the Fedwire outage seen last week, Barkin noted that it was an internal error.

Market reaction

These comments don't seem to be having a meaningful impact on the greenback's performance against its rivals. As of writing, the US Dollar Index was up 0.13% on the day at 90.99.

Additional takeaways

"No indication that inflation expectations are moving beyond a reasonable range, still shy of the Fed target."

"Drivers of the rise in long-term yields so far seems adjustment to stronger growth, inflation outlook, not impacting investment at this point."

"Downside risks reduced significantly since the last Fed forecasts in December."

"Fed has outcome-based guidance for rates that is explicit, the challenge for investors is to watch outcomes and not the calendar."

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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