Summary

  • Richmond Fed President Thomas Barkin said inflation remains the biggest risk to the Fed's dual mandate.
  • Barkin said the US economy is "remarkably stable," with consumer spending, corporate earnings, and loan demand holding up well.
  • He said inflation risks remain high because of rising costs and companies' plans to pass them on, and stressed that the Fed should adjust monetary policy cautiously.

Forecast Trend Report by Period

Thomas Barkin, president of the Federal Reserve Bank of Richmond, said inflation remains the biggest risk to the Federal Reserve's dual mandate and that monetary policy should be managed cautiously.

Walter Bloomberg reported on November 9 that Barkin described the US economy as "remarkably stable," citing solid consumer spending, corporate earnings and loan demand.

He said companies broadly continue to face rising cost pressures, and many plan to pass those higher costs on to consumers.

Barkin also said layoffs have remained limited across companies even as consumer sentiment stays weak.

Against that backdrop, he said inflation risks remain elevated and stressed that the Fed should adjust monetary policy carefully.

JH Kim