Inflation message from Richmond Fed Chairman Barkin

Richmond Federal Reserve Chairman Thomas Barkin said Friday that it would be okay to raise interest rates if inflation doesn’t continue to fall.

“I want to reiterate that I still want to be convinced by the plausible story that 2 percent inflation is our target, and that slowing demand is returning inflation to that target relatively quickly. If future data don’t support that story, I’m comfortable doing more,” Barkin said in remarks he prepared for a speech in Maryland. said.

“I realize this poses a more significant risk of slowdown, but the experience of the 70s teaches a clear lesson: If you give up on inflation too soon, inflation will come back stronger and require the Fed to do more with even more damage. This is what I want to take. It’s not a risk,” he added.

Barkin is a non-voting member on the Federal Open Market Committee that sets rates this year.