Barkin expects gradual rate hikes in the US — CNBC

Richmond Federal Reserve Bank President Thomas Barkin said that the US Federal Reserve will likely have to continue raising interest rates. At the same time, he noted that he cannot say how substantial the increase will be or what its pace will be.

Inflation concerns

In an interview with CNBC, Barkin expressed concern about high inflation and said that monetary policy will need to be adjusted. According to him, unemployment is near record lows, while inflation is too high.

“Unemployment is close to record lows, and inflation is too high. That means the path is fairly clear. The question, of course, is the pace,” Barkin said in the CNBC interview.

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Gradual pace

In Barkin’s view, gradual rate increases are justified by uncertainty in the world and new information that may emerge during this period. He added that such a pace continues to seem appropriate to him.

Barkin’s comments came a little more than a week after his colleagues decided to keep the target range for the Fed’s benchmark rate on overnight loans at 3.75% to 4%. Barkin currently does not have a vote on the Federal Open Market Committee, which sets rates, but will receive one in 2027.