Context Behind Barkin Not Objecting To Reversing Course On Rate Cuts

Barkin ('24 voter) speaking in Q&A

*BARKIN: NO OBJECTION TO REVERSING COURSE ON RATE CUTS IF NEEDED - bbg

• [Talking on moves in long rates] You get a feel of people waiting to pull the trigger until they get more confidence on where things are actually going. I think there is a sense that if you were to lower rates that there is some amount of investment that could come online by people having confidence (especially real estate and banking). People need enough stability in the situation to have the confidence to invest. I have no objection to reverse course if the right answer is to reverse course, but just from a risk management perspective you want to avoid moving hard left and then hard right.

• Follow-up Q: If there’s an added burden of proof on the first move, then one might think there’s more confidence that the following move is in the same direction?
• A: I think that’s right yes.