MNI BRIEF: Barkin Aims For 'Somewhat Restrictive' Fed Rates
MNI (WASHINGTON) - Richmond Fed President Tom Barkin said Wednesday he is looking for interest rates to get to a "somewhat restrictive policy" over time and won't pre-judge the outcome of the December FOMC meeting, noting there are two-sided risks to the central bank's goals.
Inflation is still above target and data in the first three months of next year will be key, he said in an interview with CNBC. "If you have high inflation in the first quarter, that will be a signal, at least to me, that we have a lot more work to do on inflation."
The Richmond Fed chief also sees risks to achieving the Fed's full employment goal. "You can't ignore last month's jobs report, even if you try to explain it away. Twelve thousand jobs is not good. We'll get another jobs report on Friday." (See: MNI INTERVIEW: Fed Closer To Slowing Rate Cut Pace - Kaplan)
Asked about potential changes to U.S. fiscal policy, Barkin said: "I want to understand what's happening before it gets into the data. So, it's not you have to wait for the data, but you also don't do it on your judgment of what might happen."