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
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Businesses are still in wait-and-see mode on capital spending and hiring plans.
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There is no conviction on where trade policy will settle, or on how it will impact prices and jobs.
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Firms not impacted by tariffs see confusion over trade policy as a moment to raise prices for other reasons.
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Firms say they expect to raise prices later in the year as more expensive imported goods work into their inventories.
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The job market and consumption are holding up.
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There is nothing urgent in the data warranting a rate cut at this point.
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We can't ignore a spike in inflation if it comes; price indexes are still above target.
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I am not ready to dismiss inflation risk from tariffs.
