Richmond Federal Reserve President Tom Barkin offered no view on the Federal Reserve’s December rate decision, telling reporters he wants more inflation and jobs data, Reuters reported Monday.
In prepared remarks posted by the Richmond Fed, Barkin described demand as holding up even as inflation remained high. He said the economic signals generally pointed in one direction, but uncertainty about demand called for a measured approach. If the economy stays on its current path, he said, inflation would pose the greater risk to the Fed’s dual mandate.
Barkin said businesses were reporting cost increases across a range of expenses and reconsidering whether to keep absorbing them or pass them on to customers. He also described a divide among consumers: lower-income households were financially stretched, while wealthier consumers accounted for a disproportionate share of spending and were less sensitive to price increases. His remarks linked the inflation outlook to both companies’ pricing decisions and household spending patterns.
Barkin outlined two risks connected to artificial intelligence. If AI underdelivers, he said, business investment could weaken along with consumer spending supported by wealth gains. If the technology displaces more workers than expected, household spending could also fall. He presented both as risks to demand, which he said policymakers need to weigh when setting policy.
Reuters reported that after a Nov. 9 event in Greer, South Carolina, Barkin told journalists he wanted more inflation and employment data before forming a view about December. “I don’t have a base case,” he said, as quoted by Reuters. His posted prepared speech did not identify a specific rate move. The Richmond Fed’s event advisory said his appearance included audience questions and answers.
The absence of a set position contrasts with Barkin’s earlier expectation of another rate increase, which EconoTimes covered in its earlier report on Barkin’s inflation concerns. The Federal Open Market Committee (FOMC), the Fed’s policy-setting body, is scheduled to meet Dec. 8-9.
