Federal Reserve Bank of Richmond President Thomas Barkin said on Wednesday that he sees no evidence of the United States economy overheating, which would be necessary for further interest rate hikes. Instead, he said he is still "leaning" toward more rate cuts in 2025.
Barkin said monetary policy is still "modestly" restrictive and better adjusted "to a place that is more sensible" in relation to the economy. However, he warned that "many" Trump administration policies are adding uncertainty, including tariffs, immigration, and regulation. He conceded that it is currently difficult to predict what impact tariffs will have on the US economy due to a lack of specific information on their extent and scope.