MNI: Fed's Barkin Says Hasn't Made Up Mind On July Move

Richmond Fed President Thomas Barkin said Thursday he is not yet sure whether the FOMC should resume rate hikes in July after it left the federal funds rate on hold this month in a 5%-5.25% range.

“I have been from the start a believer in slowing the boat now as we approach the dock, so I’m still waiting for the haze to clear,” he told reporters during a press briefing. “I could get convinced that there’s still more to do, I could be convinced that we’ve done enough. I don’t prejudge July.”

Despite keeping rates steady last week, officials revised up their median forecast for where the federal funds rate will peak to 5.6%. (See MNI INTERVIEW: Fed's Bostic Wants Rates On Hold Until End 2024)

Barkin said he's hopeful that inflation, which remains too high, can come back down within a reasonable timeframe and without too deep a hit to employment. But he cautioned policymakers need to see real progress in order to feel more comfortable that a pause is the right course of action.

"There’s a plausible story that we could get there in relatively short order. I'm still looking to be convinced," he said.