Fed's Barkin Stresses Rate Hikes Remain Possible Amid Inflation Concerns

Richmond Federal Reserve President Thomas Barkin stated that the option of raising interest rates should be retained if inflation does not continue to ease. While markets expect rate cuts in 2024, Barkin emphasized the need for flexibility due to uncertainty. He mentioned that there is no precise level of rates to handle inflation and that adjustments are made based on evolving economic conditions. Atlanta Fed President Raphael Bostic also expressed expectations of economic growth slowing and further decline in inflation. Both Barkin and Bostic will be voters on the rate-setting Federal Open Market Committee in 2024.