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MNI BRIEF: Fed's Barkin Not In Hurry To Make Cut Decision

(MNI) WASHINGTON

If inflation normalizes then it makes sense to normalize interest rates, but there's no hurry to make a decision, Richmond Federal Reserve President Thomas Barkin said Friday.

Slower growth has "taken the edge off" inflation, though January price rises were high, and more reports like that could be concerning. "I'm still hopeful inflation is going to come down, and if inflation normalizes then it makes the case for why you'd want to start normalizing rates," he told CNBC in an interview. An accelerating economy could lead to a rate hike if inflation spirals, but "that's not what I'm hearing from my contacts," he said.

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If inflation normalizes then it makes sense to normalize interest rates, but there's no hurry to make a decision, Richmond Federal Reserve President Thomas Barkin said Friday.

Slower growth has "taken the edge off" inflation, though January price rises were high, and more reports like that could be concerning. "I'm still hopeful inflation is going to come down, and if inflation normalizes then it makes the case for why you'd want to start normalizing rates," he told CNBC in an interview. An accelerating economy could lead to a rate hike if inflation spirals, but "that's not what I'm hearing from my contacts," he said.

Keep reading...Show less