MNI BRIEF: Fed's Barkin Sees Rates On Path Above Neutral

Richmond Fed President Thomas Barkin said Friday his current forecast is for rates to be on a path to go above neutral and he sees "a lot of rate increases" this year.

"I do take rates to restrictive," Barkin told reporters after a speech about his SEP forecasts, while not offering his estimate for neutral and cautioning there are large error bands around those estimates. Barkin also refrained from offering his view of how fast balance sheet reduction should be but stressed that it will happen soon.

"I'm very open to half point moves," he said, adding it is not his base case now and there would need to be continued movement upward in inflation expectations with signs of becoming unanchored or actual inflation persisting higher.