Fed member, Thomas Barkin commented today the situation in the US economy and businesses. Here is the breakdown from his remarks. His comments are more 'hawkish' than Fed Waller's; Barkin signals no rush with a rate cut and still 'wait & see' mode due to unexpected effects from tariffs.
Fed Barkin
-
Businesses are still in wait-and-see mode on capital spending and hiring plans.
-
There is no conviction on where trade policy will settle, or on how it will impact prices and jobs.
-
Firms not impacted by tariffs see confusion over trade policy as a moment to raise prices for other reasons.
-
Firms say they expect to raise prices later in the year as more expensive imported goods work into their inventories.
-
The job market and consumption are holding up.
-
There is nothing urgent in the data warranting a rate cut at this point.
-
We can't ignore a spike in inflation if it comes; price indexes are still above target.
-
I am not ready to dismiss inflation risk from tariffs.
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
