Fed President Thomas Barkin Urges Caution as US Economic Growth Shows Signs of Re-Acceleration

Richmond Federal Reserve Bank President Thomas Barkin Discusses Potential Re-Acceleration of US Economic Growth

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Washington, DC – In a statement released on Thursday, Thomas Barkin, the President of the Federal Reserve Bank of Richmond, emphasized the need for the Federal Reserve Board (Fed) to be aware of the possibility that the United States’ economic growth may not slow down as previously anticipated, but instead re-accelerate.

Barkin pointed to recent positive indicators such as better-than-expected US retail sales and an increase in consumer confidence, hinting at a potential re-acceleration scenario that had not been present just a few months ago. Citing the high prices and momentum gained by the economy, he stated, “a re-acceleration scenario is emerging that did not exist three or four months ago.”

Given the persistently high inflation and the absence of demand signals indicating a downward trend, Barkin proposed that the Fed should consider a more cautious approach towards further monetary tightening through rate increases. He suggested the possibility of “weakening” this approach if the Fed remained confident in the continuation of high inflation and robust demand.

Looking ahead to September’s Federal Open Market Committee (FOMC) meeting, Barkin deemed it unpredictable what decisions would be made. Currently, market expectations suggest that interest rates will remain unchanged.

Regarding the recent rise in US Treasury yields, Barkin dismissed concerns about rapidly tightening financial conditions, citing a belief that the current policy rate level could allow the annual bond yield to surpass 4% without significant disruption.

As we await further developments, Barkin’s statements highlight the need for the Fed to assess the evolving economic landscape and weigh the possibility of a re-acceleration of US economic growth.

Richmond Federal Reserve Bank President Thomas Barkin said the Fed needs to be aware of the possibility that US economic growth will pick up again instead of slowing down. FILE PHOTO: Washington, DC, 2013. REUTERS/Jonathan Ernst/File Photo

[ダンビル（米バージニア州） ２２日 ロイター] – The President of the Federal Reserve Bank of Richmond, Thomas Barkin, said on Thursday that the Federal Reserve Board (Fed) should consider the possibility that the economic growth of the United States will not slow down but re-accelerate.

Citing the recent release of better-than-expected US retail sales and an increase in consumer confidence, he said, “a re-acceleration scenario is emerging that did not exist three or four months ago.” Prices remain high and the economy is picking up momentum. ,” he said.

He added that if the Fed was confident that inflation remained high and that demand did not indicate a downward trend, it would “weaken” further monetary tightening through rate increases.

He said it is unpredictable what decisions the Federal Open Market Committee (FOMC) will make in September. Market expectations are that interest rates will not change.

He also said he did not see the recent rise in US Treasury yields as a sign that financial conditions could be tightening rapidly, and given the current level of the policy rate, he expected “10 I don’t think it’s too inappropriate for annual. bond yield to be more than 4%.”

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