Fed's Barkin Optimistic on Soft Landing, Cautions on Potential Rate Hikes Ahead
Richmond Federal Reserve President Thomas Barkin indicated that while the U.S. economy is progressing towards a soft landing, with inflation showing signs of easing, the Federal Reserve remains open to further interest rate hikes if necessary. Despite the Fed's recent pause in rate increases, Barkin highlighted ongoing risks, including potential economic slowdowns, geopolitical events, and persistent inflation, that could necessitate additional policy tightening. His comments come as the Fed signals a less aggressive rate cut plan for 2024, contrasting with market expectations of more significant cuts this year.