Federal Reserve's Barkin Cautious on Rate Cuts Amid Inflation Concerns

According to BlockBeats, Federal Reserve official Thomas Barkin stated on Friday that there is no urgency to cut interest rates due to unresolved risks of inflation from new import tariffs, alongside a robust U.S. job market and strong consumer spending. In an interview with Reuters, Barkin emphasized, "I don't think these data compel us to rush into rate cuts... I'm very aware that we haven't met our inflation target for four years." Businesses in Barkin's Richmond district anticipate price increases later this year as new tariffs take effect, with the possibility of further tariff hikes in the coming months. Additionally, he noted that the unemployment rate remains low at 4.2%, and there are no signs of significant layoffs, which would undermine the Federal Reserve's goal of maintaining maximum employment. With the final outcome of the tariffs still uncertain, Barkin remarked, "I have to say, our response still needs to be one of watching and waiting. Watching and waiting is not hitting the brakes. It's just not hitting the gas."