Federal Reserve Bank of Richmond President Thomas Barkin admitted he is "surprised" by how much strength the United States economy has shown despite the central bank's tight monetary policy while adding it is uncertain how it will develop in the near future.
Speaking at the New York University's (NYU) Money Marketeers, Barkin said that it remains unknown at the moment how the Fed's balance sheet will impact the country's output. He added it is still too early to determine what kind of monetary policy decision the central bank will take at its next meeting but noted he supported keeping interest rates unchanged in September.
Moreover, Barkin described the labor market as "very healthy" and linked future improvements in the sector to disinflation. He warned that "some slow down" might be necessary to reduce consumer prices.
