Richmond Fed President Thomas I. Barkin: Inflation Risks Dominate, Policy Changes Require Caution

According to Jin10, Richmond Fed President Thomas I. Barkin said inflation has remained above the Federal Reserve’s 2% target for nearly six years, and risks to its dual mandate are currently concentrated in inflation. Businesses continue to face broad-based cost increases and plan to pass some of them on to consumers. Barkin said that with demand strong and inflation persistently high, the direction of monetary policy tightening is clear, but it should proceed cautiously. He warned that if AI development falls short of expectations, it could weigh on business investment, stock prices, and consumption; if development exceeds expectations, it could also lead to more jobs being displaced. Barkin will become a voting member of the Federal Open Market Committee in 2027.