Richmond Fed's Barkin Warns on Inflation, Tariffs Impact

Thomas Barkin, President of the Richmond Fed, expressed concerns about inflation and the potential impact of tariffs during recent discussions. He noted that while current economic data appears firm, risks are emerging, particularly regarding employment due to rising prices from tariffs. Barkin emphasized the need for confidence in inflation before considering interest rate cuts, and he likened the current economic situation to the inflationary pressures seen in the 1970s, though he does not see a similar expectation of stagflation at this time. He mentioned that suppliers are likely to pass on higher costs to consumers, which could exacerbate inflationary pressures. Barkin advocated for a cautious 'wait and see' approach regarding monetary policy adjustments, signaling uncertainty about future rate cuts. Overall, his remarks reflect a complex economic landscape shaped by tariffs and inflation risks.