Federal Reserve Bank of Richmond President Tom Barkin said Tuesday that inflation remains above target and that the central bank should remain "modestly restrictive" on interest rates until more progress is made.
Speaking at the Rotary Club of Richmond, Barkin noted that while inflation has dropped significantly from its peak, uncertainty over factors like tariffs, geopolitical risks, and labor shortages makes it challenging to determine the next policy move.
Barkin pointed out that the 2018 tariffs increased inflation by about 30 basis points, but the impact of new trade policies remains uncertain. He also highlighted structural challenges, including an aging population and rising deficits, that could drive long-term inflationary pressures.
