Richmond Fed President Tom Barkin expressed uncertainty regarding the current interest rates' effectiveness in controlling inflation, describing it as a 'close call'. He acknowledged that while there might be a case for raising rates further, he also suggested that there may be time to assess the situation before the next meetings, following a recent softer inflation reading.

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https://www.wsj.com/economy/central-banking/tom-barkin-fed-president-interest-rates-99f2b676

Fed’s Barkin Says It’s a ‘Close Call’ Whether Rates Are High Enough

Richmond Fed president, who doesn’t vote on policy this year, says he doesn’t know whether he would have joined three colleagues who dissented in favor of a rate increase

Nick Timiraos

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Tom Barkin, CEO of the Federal Reserve Bank of Richmond, seated and gesturing during a meeting. Tom BarkinCornell Watson for WSJ

Richmond Fed President Tom Barkin said it is “a close call” whether the central bank’s interest-rate setting is high enough to bring inflation down, and that he didn’t know whether he would have joined three fellow regional Fed presidents who voted this week for higher rates.

“I think there is a strong case there” for adding restraint and taking back some of last year’s rate cuts, Barkin said in an interview Friday. After a softer inflation reading in June, “I think you could also make a case…that there’s time before the next set of meetings” to determine whether the current setting is adequate, he said.

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Fed’s Barkin Says It’s a ‘Close Call’ Whether Rates Are High Enough

Richmond Fed president, who doesn’t vote on policy this year, says he doesn’t know whether he would have joined three colleagues who dissented in favor of a rate increase

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