Fed’s Barkin: Disinflation trend positive, economy offers time for deliberate rate decisions

Richmond Fed President Tom Barkin expressed optimism about the ongoing disinflation trend during a virtual event overnight.

Barkin noted that recent data has been encouraging, both in overall levels and across various inflation components, stating that “all the elements of inflation seem to be settling down.” He remains “relatively hopeful” that this trend will persist.

Barkin also highlighted that the current economic environment provides some leeway to assess whether the economy is gradually normalizing, which would allow for a steady and deliberate approach to rate adjustments. He pointed out the importance of determining if further aggressive action is necessary, depending on how the economy evolves.