Fed policy may need to stay restrictive for longer due to inflation


The US central bank’s benchmark policy rate should stay restrictive until it is more certain that inflation is returning to its 2% target, Richmond Federal Reserve President Thomas Barkin says.

“I think there is more upside risk than downside risk” to inflation, given the economy’s continued strength and the possibility of renewed wage and other price pressures, Barkin told the Maryland Bankers Association in Baltimore last Friday.

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