Fed's Barkin: Makes sense to remain patient on rate outlook
Fed's Barkin speaking
- it makes sense to remain patient on rate outlook given current US economic climate
- there is not a strong case to push rates higher when inflation is under control
- labor market remains strong: sees continued growth this year
- there is not a strong case to move rates lower one growth remains healthy
- US economic data look relatively healthy after sentiment shock late last year
- highly indebted companies have a bias to react to negative news by cutting costs and reducing staff
- he does not discount the idea that we could talk ourselves into recession
- Fed may want to simplify communication tools such as its dot plot
- business contacts say the economy is sound but not spectacular, but business confidence is also fragile
There is something for everyone but the Fed remains on hold in his eyes and sees continued growth with a close eye on a shift in sentiment.
Thomas Barkin is the President of the Richmond Fed. He is not a voting member until 2021.