![Fed's Barkin](https://images.forexlive.com/images/Fed%27s%20Barkin_id_0209ea2b-ef0f-4ba8-8d49-733309ab0901_size900.jpg)
Fed's Barkin
- Consumer demand remains healthy, though slowing
- Labor market reacceleration at this point seems unlikely
- There is more uncertainty around the path of inflation given that progress over last six months has been so reliant on goods
- Companies still trying to raise prices; need to see how consumers and competitors react
- First quarter will be important given that businesses tend to mark up at the start of the year
- US still at a point where inflation is above target and employment is near max
- Labor market is 'normalizing nicely'
- No problem 'toggling' rate to more normal levels as you build confidence inflation is falling
I think there is some real insight in these comments. The 'toggling' idea is like the Fed taking out insurance and moving down to around 4.00% if inflation stays low. The comment about Q1 pricing is an important one too, given how strong prices rose in Jan/Feb of last year.
![US CPI mm](https://images.forexlive.com/images/US%20CPI%20mm_id_2094fe20-3c3e-4241-b6f5-f06e6aff478b_size900.jpg)
US CPI m/m