Fed’s Barkin (non-voter for 2025): Base case is its going to take a while before we get clarity - CNBC
- Besides tariff rates, there is consumer response
- Suppliers are emboldened, says they'll have to pass on higher prices
- Consumers say they're tired of paying higher prices
- Not convinced that higher prices will be passed on or that there won't be inflation
- To cut rates you need confidence on inflation
- When we use stagflation think of inflation expectations becoming unanchored; we are not seeing that now
- Data right now is okay, but there is a risk on the employment side due to tariffs
- This is not the time to say how many rate cuts I've penciled in for this year; Now is not the time for forward guidance on policy
- Nervous about inflation and employment data
- Reiterates that the Fed is in no hurry to cut rates; Retains a wait and see policy
- The balance sheet runoff could be slower for longer