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MNI BRIEF: Fed's Barkin Says Soft Landing Not Inevitable

Federal Reserve
A soft landing for the U.S. economy is possible but not assured and Federal Reserve officials will need to maintain a close eye on incoming data to gauge when to make its next move on interest rates, Richmond Fed President Thomas Barkin said Wednesday.
"A soft landing is increasingly conceivable but in no way inevitable," said Barkin in a speech. Risks include that the economy could run out of steam or, conversely, that inflation either steadies above target or even reaccelerates.
"Is inflation continuing its descent and is the broader economy continuing to fly smoothly? Conviction on both questions will determine the pace and timing of any changes in rates. There’s no autopilot. The data that come in this year will matter," said Barkin. (See MNI INTERVIEW: Bullard Says March Too Early For Fed To Cut)
MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com
MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com

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