"Policy may not be as restrictive as perceived"

Federal Reserve Bank of Richmond President Thomas Barkin said the inflation battle still hasn’t been won, and the US economy is likely to remain resilient as long as unemployment remains low and asset valuations high.

“The US economy, particularly its consumer, has been much more resilient to rate increases than most expected and is likely to stay so as long as valuations remain elevated, and unemployment remains low,”

“given the remarkable strength we are seeing in the economy,” he said he is open to the idea that the longer run rate that keeps supply and demand in balance “has shifted up somewhat” and that policy may not be as restrictive as perceived.

Bloomberg 28 June 2024

https://www.bloomberg.com/news/articles/2024-06-28/barkin-says-us-economy-is-withstanding-fed-s-battle-on-inflation

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