Richmond Fed Chairman Thomas Barkin said today that the Fed's policy is in restrictive territory, but there is uncertainty about where interest rates should go in the future.
Barkin said they are looking for signs that demand is falling in response to higher interest rates and inflation. Barkin stated that it is difficult to trust that interest rate hikes will do all the work for inflation.
"Some parts of the economy seem to be cooling off, while others remain buoyant," he said.
Thomas Barkin is a central bank executive who has served as chairman and CEO of the Richmond Federal Reserve Bank. He is also a member of the Federal Open Market Committee (FOMC), the main monetary policy body of the Fed.
Thomas Barkin stated that inflation will be more stubborn than many people had hoped. Barkin said he sees more willingness among businesses to increase prices, and this will continue until demand falls.
Barkin also explained that he has heard less about the risks from wage increases.
*Not investment advice.