Navigating the Economic Fog: Barkin Sees Steady Growth Amid AI Buzz and Inflation Risk

Richmond Fed President Tom Barkin argues that the U.S. economy keeps moving despite lingering policy fog, AI-driven uncertainty, and geopolitical shocks. Inflation has cooled from its peak but remains above target, unemployment sits low while the labor market feels fragile, and demand is narrow and skewed toward AI-related activity and wealthier consumers. The Fed has cut rates but held steady recently to await clearer signals about the path forward, as policymakers weigh risks from oil price shocks and global dynamics.