Fed's Barkin: Upcoming rate decisions will need to be finely tuned
Richmond Federal Reserve Bank President Thomas Barkin said on Tuesday that upcoming rate decisions will need to be "finely tuned" given risks to both unemployment and inflation goals, per Reuters.
Key takeaways
"Current policy rate is within range of neutral."
"Both sides of the Fed's dual mandate bear watching."
"Inflation has come down but remains above target, unemployment remains low but do not want the job market to deteriorate much further."
"Last year showed the economy's resilience, but demand and job growth are narrowly focused on certain industries, and sentiment has dipped."
"Expect last year's uncertainty to diminish in 2026, building confidence among consumers and businesses."
"Tax changes, deregulation, impact of rate cuts should all add stimulus to the economy this year."
Market reaction
These comments received a neutral score of 5.4 from FXStreet Fed Speechtracker. In turn, the US Dollar Index trades little-changed on the day, rising 0.08% at 98.44.
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