Barkin: inflation threat outweighed jobs in latest Fed rate decision

Richmond Federal Reserve President Thomas Barkin's remarks were disseminated through news wires.

• The Fed increased interest rates last week as inflation risks were deemed more significant than those to maximum employment.
• Last week's rate increease is intended to aid in restoring price stability; whether further increases are required remains to be seen.
• The economy, if anything, is gaining strength.
• 'Passing' shocks such as tariffs and energy are not subsiding; there is a risk that current high inflation could affect future inflation.

Barkin's remarks are assessed as hawkish. He perceives the economy as sufficiently strong to keep the focus on inflation, while not ruling out another rate hik. The key question for traders is whether inflation will begin to stabilize following last week's move. His statements do not commit the Fed to a further increase.