Barkin says Fed well-positioned to respond to economic changes

Richmond Fed President Thomas Barkin noted that the economy is “in a good place” and that Fed is now positioned to react flexibly to evolving economic conditions.

Speaking at an event overnight, Barkin highlighted that interest rates are balanced—elevated from recent lows but no longer at peak levels—providing Fed with room to adjust policy as needed.

Barkin observed that more price-sensitive consumer base is contributing to moderating inflation pressures, suggesting that demand adjustments are naturally aiding Fed’s inflation objectives.

Additionally, he pointed to the resilience of the labor market, with companies retaining employees and maintaining lower turnover rates, which has provided stability and boosted productivity.