Richmond Fed’s Barkin Says Rate Hike Still an Open Question

Richmond Fed President Tom Barkin said the central bank has not determined whether additional rate increases will be needed to bring inflation back to its 2% target. He pointed to tariffs, oil prices and AI-related demand as factors that have kept inflation elevated, but added those shocks could fade and leave current policy sufficiently restrictive.

Barkin warned that inflation could become more embedded if supply pressures persist and inflation expectations move higher. His comments reinforce a data-dependent outlook as markets anticipate unchanged rates in September but price in a possible hike later in the year.