- Speaking on CNBC, Barkin (’24 voter) again held back from explicitly revealing a preferred rate path whilst watching data with a lot of time before the Sept FOMC. Consistent with other Fed members he wants to see a sustained period of inflation under control but also included some less hawkish elements.
- 2Y Tsy yields are up just 0.5bps since Barkin headlines started hitting at 1004ET with the move of the day coming just prior to that from a stronger than expected U.Mich survey.
- Bloomberg headlines:
*BARKIN: WANTS TO SEE SHORT-TERM RATES IN RESTRICTIVE TERRITORY, STILL MORE TO COME TO GET [THERE] (from likely need to see restrictive on Jul 12)
*BARKIN: WANTS TO SEE PERIOD OF SUSTAINED INFLATION CONTROL
*BARKIN: WANTS REAL RATES IN POSITIVE TERRITORY ACROSS CURVE
Less hawkish tinges:
*BARKIN: TIGHT LABOR MARKET DOESN'T HAVE TO CAUSE INFLATION
*BARKIN:DEMAND DEFINITELY SOFTENING, ESP FOR LOW-INCOME CONSUMER
*BARKIN: MUST BELIEVE BAL-SHEET SHRINKING HAS TIGHTENING EFFECT