MNI BRIEF: Next Several Months Inflation Data Critical -Barkin

Federal Reserve Bank of Richmond President Thomas Barkin said Friday inflation data over the next several months will be key for determining the path of interest rates, while the latest labor market data point to a "normalizing but not weakening" job market. He did not reveal his preferred interest rate path, saying only there is a range of projections on the FOMC from no rate cuts to six cuts this year.

"You can argue inflation is already under control, looking at the last six months," he told reporters after a speech. But looking at the 12-month rate, "there's still more to do." The labor market "feels to be moving in a very steady, softening pattern," he said. With headline PCE inflation at 2.6% and unemployment at 3.7%, "you're pretty close to where you're headed." (See: MNI INTERVIEW: ISM Chief Sees Bumpy Start To 2024 For Services)