"Richmond Fed's Barkin Balances Soft Landing Hopes with Rate Hike Realities"

A Federal Reserve official reflects on the economic progress made in the past year, noting a significant decrease in inflation and a resilient economy despite aggressive monetary policy actions, including raising the federal funds rate and shrinking the balance sheet. The official remains cautious about the potential for a "soft landing," where inflation returns to target levels without harming the economy, but acknowledges risks such as economic slowdown, unexpected shocks, persistent inflation in certain sectors, and the need for possible further rate hikes. The official emphasizes the importance of the Fed's credibility and the need to maintain the 2 percent inflation target, while also highlighting the economy's resilience and preparedness for a potential slowdown.