Barkin of the Federal Reserve cautions that further inflation is expected and emphasizes the need for a firm economic slowdown.

Richmond Federal Reserve President Thomas Barkin has discussed a strategy to combat inflation by slowing down the economy. During a conference call, Barkin expressed skepticism about achieving the central bank’s inflation target and emphasized the need for economic slowdown. He highlighted persistently high inflation in various sectors and the importance of demand-side measures. Barkin also acknowledged that while a slowdown is expected, the US economy is better prepared compared to previous recessions. He explained that consumers’ concerns about inflation go beyond the year-on-year change in prices and involve the overall impact on their daily lives. When asked about raising interest rates, Barkin emphasized the importance of inflation and demand resiliency. The S&P 500 index remained flat, while treasury yields rose. Traders look forward to Fed Chair Jerome Powell’s upcoming remarks.