Thomas Barkin Supports Continued Gradual US Interest Rate Hikes

Richmond Federal Reserve President Thomas Barkin stated that the US central bank must continue raising interest rates. The measure aims to curb inflation, which the monetary authority still considers to be at elevated levels.

Barkin advocated for a gradual pace of tightening. He justified this strategy by the need to account for global uncertainties and the arrival of new economic data over time. Currently, the benchmark interest rate in the United States sits in the range of 3.75% to 4%.

Barkin noted that unemployment in the country is near historic lows. To him, fighting inflation is the most urgent risk at the moment. He believes monetary policy is moving toward a neutral level that neither stimulates nor restricts economic growth.

Regarding artificial intelligence, the Fed member pointed out that the technology creates immediate price pressures. However, he assesses that innovation should boost production and help reduce inflation in the long run.

This stance reinforces the central bank's caution in the face of widespread inflationary pressures. The official does not have a vote on the monetary policy committee this year, but he will join the group in 2027.