Fed’s Barkin: Have not yet seen signs that inflation is actually on track

Richmond Federal Reserve (Fed) President Thomas Barkin hit newswires for a second time on Monday as the Federal Open Market Committee (FOMC) voting member gave his outlook on economic conditions in the US while taking audience questions during a speech in South Carolina.

Key highlights:

• Business contacts suggest labor market is normalizing, though some sectors are still catching up.
• Neutral rate metrics have moved up, but current policy still feels restrictive.
• Believes that current rates are restrictive enough.
• Barkin feels the risks are weighted towards more inflation.
• It takes a while to corral price-setters.
• Recent data is a stubborn read, less optimistic about how long it will take to get inflation under control.
• Imagines Fed will need to take some edge off of demand to finally finish inflation fight.
• Barkin has not yet seen evidence that inflation is on track.
• GDP growth still seems strong, Fed is now focusing on job market.

Read more: Barkin earlier comments