Barkin Backs Fed Hike, Citing Persistent Inflation Risks

Richmond Fed President Tom Barkin said the U.S. economy is firming, with resilient consumer spending and strength in sectors such as defense and manufacturing, while inflation remains broad and more persistent than officials expected. He supported the Fed’s recent quarter-point rate increase, saying inflation risks outweigh risks to maximum employment and that the move should help return inflation to the 2% target. Barkin cited strong demand as well as energy costs and tariffs, whose price effects have lasted longer than anticipated; he also said supply-chain pressures linked to AI investment have contributed to inflation. He left open whether further rate increases will be needed.