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Barkin: Needs To Be Convinced Inflation Is Stabilizing

FED
  • Richmond Fed’s Barkin (’24 voter) says he’s open to lowering rates once inflation is on track to 2%, still seeing a need to be convinced inflation is stabilizing.
  • Recall he said on Friday that the Fed should normalize rates as the economy normalizes, with the labor market moving in a very steady softening pattern and with a reacceleration in the economy seeming less likely.
  • On the BTFP ahead of its mid-March sunset, he says the Fed will decide in March on the program, following Barr and Williams saying it’s an emergency program to provide liquidity with implications that it will end then.
  • The limited comments come from a post-speech Q&A.

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