Barkin referenced the current benchmark rate which stands between 5.25% and 5.5%. He also acknowledged the Federal Reserve’s 2% inflation goal and the rising bond yields. Despite these figures, he pointed out that 12 of 19 officials still favored another rate hike.
The labor market, according to Barkin, has shown strength with businesses showing reluctance for layoffs. However, he said that a softening of the labor market would be required to curtail inflation.
Looking ahead, Barkin mentioned projections for rates going above 6% next year. Additionally, he indicated that fewer cuts are anticipated in 2024. These projections and the current economic landscape underscore the uncertainty surrounding future monetary policy decisions amidst potential disruptions such as a government shutdown.
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Source: Economy - investing.com
