Interest Rates Should Be Higher for Longer Amid Inflation Uncertainty, According to Richmond Fed President
One of the Federal Reserve’s decision-makers says that the risk of an inflationary wave in 2025 is higher than most investors realize.
Speaking with the Maryland Bankers Association in Baltimore, Thomas Barkin, President of the Federal Reserve Bank of Richmond, says he thinks “there is more upside risk than downside risk” to inflation given the possibility of higher wages and other price pressures, Reuters reports.
“I put myself in the camp of wanting to stay restrictive for longer as opposed to the other school, which would be ‘We’re done, so why not take rates down to neutral.'”
The current federal funds rate is 4.33% after a series of cuts from the Federal Open Market Committee (FOMC) that started in September of 2024. The FOMC is scheduled to have its next meeting on interest rates on January 28th.
Barkin says he expects “more upside than downside in terms of growth,” with potentially “more risk on the inflation side…”
He also says that the job market is more likely to “break toward hiring than toward firing.”
A WalletHub survey reveals that inflation is still heavy on the minds of the American consumer. According to the survey, 56% of Americans say inflation is their biggest financial concern for this year.
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The post Interest Rates Should Be Higher for Longer Amid Inflation Uncertainty, According to Richmond Fed President appeared first on The Daily Hodl.
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Interest Rates Should Be Higher for Longer Amid Inflation Uncertainty, According to Richmond Fed President
One of the Federal Reserve’s decision-makers says that the risk of an inflationary wave in 2025 is higher than most investors realize.
Speaking with the Maryland Bankers Association in Baltimore, Thomas Barkin, President of the Federal Reserve Bank of Richmond, says he thinks “there is more upside risk than downside risk” to inflation given the possibility of higher wages and other price pressures, Reuters reports.
“I put myself in the camp of wanting to stay restrictive for longer as opposed to the other school, which would be ‘We’re done, so why not take rates down to neutral.'”
The current federal funds rate is 4.33% after a series of cuts from the Federal Open Market Committee (FOMC) that started in September of 2024. The FOMC is scheduled to have its next meeting on interest rates on January 28th.
Barkin says he expects “more upside than downside in terms of growth,” with potentially “more risk on the inflation side…”
He also says that the job market is more likely to “break toward hiring than toward firing.”
A WalletHub survey reveals that inflation is still heavy on the minds of the American consumer. According to the survey, 56% of Americans say inflation is their biggest financial concern for this year.
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Follow us on X, Facebook and Telegram
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
The post Interest Rates Should Be Higher for Longer Amid Inflation Uncertainty, According to Richmond Fed President appeared first on The Daily Hodl.
Read More
$109,000,000,000 in US Gold Reserves Now in Question as German Officials Demand to Count Bullion Bars At New York Fed: Report