.jpg)
1 hour ago
4
Article content
(Bloomberg) — Federal Reserve Bank of Richmond President Tom Barkin said the ability of businesses and consumers to tolerate the latest in a series of supply shocks will determine whether the US central bank can continue to “look through” higher inflation without raising interest rates.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
“With inflation above our 2% target for over five years now, it’s worth asking whether the cumulative impact of so many waves risks loosening the anchor,” Barkin said Thursday in remarks prepared for a speech in Raleigh, North Carolina. “For me, it comes down to how much businesses, consumers, and inflation expectations can take.”
Article content
Article content
Article content
Barkin’s comments come as an energy-price shock triggered by the Iran war has shifted sentiment among Fed officials away from any consideration of rate cuts in the near term. A growing number of them are advocating a decision to signal that the central bank’s next move is just as likely to be a hike as a cut.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
The Richmond Fed chief suggested he’s become more concerned about the possibility that the US has entered a new era in which supply shocks will prove more frequent — driven by heightened geopolitical tensions, trade fragmentation, more severe weather events, rising government debt and other forces.
Article content
For the time being, he said, the Fed’s monetary policy setting is “well positioned” to manage risks to both the labor market and inflation.
Article content
Investors now see a quarter-point rate increase by the end of 2026 as probable, according to federal funds futures.
Article content
Advertisement 1
English (US)