Richmond Fed President Barkin Comments On Employment And Interest Rates

According to BlockBeats, on August 26, Richmond Federal Reserve President Thomas Barkin stated in recent comments that the current employment strategy of 'low hiring, low firing' adopted by U.S. businesses is unlikely to be sustainable. Barkin noted that if the economy weakens, companies may resort to layoffs. While businesses have become more cautious in filling positions, there has not yet been a significant increase in layoffs, as companies remain reluctant to let go of employees. Barkin emphasized that he is taking a 'trial and error' approach to interest rate cuts, indicating he might support a 25 basis point reduction rather than the 50 basis points some analysts predict. He pointed out that the inflation rate is still half a percentage point above the Federal Reserve's 2% target, and that rate cuts could potentially fuel inflation by boosting demand for housing and other goods.