Richmond Fed President Thomas Barkin expressed optimism about the inflation outlook in an interview with MNI Webcast. Barkin noted that we are “on the back side of inflation,” indicating that inflationary pressures are easing.
He highlighted that the next several months will be critical in gaining more insights and that Fed is well-positioned from a policy standpoint to react and ease montary policy.
Barkin emphasized two key themes: “sustainment” and “broadening.”
Sustainment refers to maintaining a downward trend in both headline and core inflation, ensuring that it continues on a path towards 2% target. Broadening implies that this trend should be consistent across a wide range of goods and services in the inflation basket.
