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Barkin says it is still unclear if rates are restrictive enough

He noted that many Fed officials see current rates as restrictive, even as inflation may prove either easing or more persistent.

Reported · Written up by our desk · Central Banks

Richmond Federal Reserve President Thomas Barkin said Thursday it remains an open question whether the current level of US interest rates is restrictive enough to return inflation to the Fed's 2% target, or whether additional tightening could be needed, according to FXStreet citing Reuters.

Barkin pointed to the resilience of the US economy, highlighting solid employment, household spending, and business investment as factors that have helped activity withstand high rates and uncertainty.

On inflation, he said some forces could ease price pressures, while also warning that inflation could prove more persistent, with risks including demand weakness or the need for higher rates to meet the target.

FXStreet also reported that the US Dollar Index, which tracks the US dollar against a basket of six major currencies, was down 0.1% on Thursday, trading around 99.9 at the time of writing.

Latest closeDollar index 99.99 ▲0.2%

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