October 02, 2024 16:12 GMT
FED: Barkin - Fed Can't Declare Inflation Battle Over
FED
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Reuters has run headlines from Richmond Fed’s Barkin (’24 voter) ahead of his scheduled appearance at 1215ET. They don’t appear too surprising considering AP published an interview with him Sep 26 on the need for a two-phase approach to easing policy. He said at the time that “With inflation and unemployment being so close to normal levels, it's okay to dial back the level of restraint, somewhat...I'm not yet ready to declare victory on inflation. And so I wouldn't dial it back all the way" to neutral.
- "FED'S BARKIN: HALF-PERCENTAGE-POINT RATE CUT IN SEPTEMBER WARRANTED BECAUSE RATES WERE 'OUT OF SYNC' WITH DECLINE IN INFLATION AND THE UNEMPLOYMENT RATE NEAR ITS SUSTAINABLE LEVEL
- BARKIN: FED CAN'T DECLARE INFLATION BATTLE OVER, SAYS HE EXPECTS LITTLE FURTHER DROP IN CORE PERSONAL CONSUMPTION EXPENDITURES PRICE INDEX UNTIL NEXT YEAR
- HALF PERCENTAGE POINT OF CUTS SHOWN AS THE MEDIAN FED POLICYMAKER PROJECTION FOR THE REST OF THIS YEAR WOULD ALSO TAKE 'A LITTLE BIT OF THE EDGE OFF' RATES
- HE IS WATCHING CLOSELY HOW LOWER INTEREST RATES INFLUENCE HOME AND AUTO SALES TO SEE IF DEMAND RISKS OUTRUNNING SUPPLY" - Reuters
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