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Fed’s Barkin Says Full Impact of High Interest Rates Yet to Come
Federal Reserve Bank of Richmond President Thomas Barkin said he expects high interest rates to slow the economy further and cool inflation to the central bank’s 2% target. Barkin, who votes on monetary policy this year, said Monday the strength of the labor market offers the Fed time to gain confidence that inflation is moving sustainably lower before lowering borrowing costs. But he added there’s a risk continued housing and services inflation will keep price gains elevated — as seen this year. “I am optimistic that today’s restrictive level of rates can take the edge off demand in order to bring ... (full story)