Richmond Fed President Thomas Barkin said on Tuesday that upcoming interest rate decisions will need “fine-tuning” given risks to unemployment and inflation targets, according to Reuters.
Key takeaways
“The current interest rate is within the neutral range.”
“Both aspects of the Fed’s dual mandate are worth monitoring.”
“Inflation has come down but is still above target, unemployment remains low but we don’t want the labor market to deteriorate much further.”
“Last year showed the economy was resilient, but demand and job growth were narrowly focused on certain industries, and sentiment weakened.”
“We expect last year’s uncertainty to diminish in 2026, building confidence among consumers and businesses.”
“Tax changes, deregulation and the impact of interest rate cuts should all add a stimulus to the economy this year.”
Market reaction
This review received a Neutral score of 5.4 from FXStreet Fed Speechtracker. In contrast, the US Dollar Index is trading little changed on the day, up 0.08% at 98.44.
