Inflation Assessment by Thomas Barkin

Richmond Fed President Thomas Barkin stated that the central bank aims to reduce inflation figures, but explain that there is a possibility that these efforts could push the economy into recession.

Commenting on inflation at an event in Maryland, Richmond Fed President Thomas Barkin emphasized, "We will do whatever it takes to return inflation to the 2 percent target." "There is a way to go to get inflation under control, but there is also the possibility of a recession in the process," said President Barkin, underlining that this can be done without major damage to economic activity, but that there are some risks. Barkin said in his previous statement that interest rate hikes should continue in order to avoid a policy mistake similar to the 1970s and to rein in inflation. The US Federal Reserve had raised interest rates by 75 basis points each in its last two meetings. There are different opinions on the size of the rate hike in September. St. Louis Fed President James Bullard, one of the Fed members, advocated a 75 basis point increase the other day, while Kansas City Fed President Esther George stated that it is necessary to go cautiously.

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