Fed’s Barkin Says More Data Needed Before Rate Hikes Are Appropriate

Federal Reserve Bank of Richmond President Thomas Barkin poses during a break at a Dallas Fed conference on technology in Dallas, Texas, on May 23, 2019. Ann Saphir/Reuters

Richmond Federal Reserve President Tom Barkin on Thursday said the U.S. central bank has cleared a path for what he hopes to be a “seamless” start to a reduction in its support for the economy, but that it will take more time to determine when interest rate hikes will be appropriate.

“We still have a lot to learn about whether recent inflation levels will be sustained and how much room we have to run in the labor market until we get to maximum employment,” Barkin said in remarks prepared for delivery to the Forecasters Club of New York. “As COVID-19 hopefully eases, I expect the answers to these questions to become clearer.”