It has since signaled a more cautious approach following
recent banking turmoil, which could cause banks to tighten
credit conditions further. Barkin said he was closely monitoring
that as well as the lagged effect of the Fed's past policy
actions as they work their way through the economy to dampen
demand.
Barkin declined to say whether he supported another rate
hike at the Fed's upcoming policy meeting on May 2-3 but
emphasized that while demand is cooling, he is also very alert
to jobs and inflation data, both of which remain relatively
robust.
"I'm waiting for inflation to crack ... It's moving in the
right direction ... but in the absence of a month or two months
or three months with inflation at our target, it's hard to make
the case that we're compellingly headed there," Barkin said.
Investors still expect one more quarter percentage point
rate rise at the Fed's meeting next month but expect the central
bank to reverse course by the end of the summer and are now
pricing in a few cuts by year end.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
US consumer price gains slow; underlying inflation still hot US economy still churning out jobs at brisk clip; wage pressures
subsiding Fed officials keep rate hike door open, say bank stress may
weigh on outlook U.S. Fed delivers small rate hike amid global banking turmoil ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Lindsay Dunsmuir; Editing by Nick Zieminski)
(Adds more quotes, background, file photos)
April 12 (Reuters) - The Federal Reserve has more work
to do in bringing inflation back down to its 2% target because
the latest data on price pressures is not sufficiently weak,
Richmond Fed President Thomas Barkin said on Wednesday.
His comments came soon after a key government report showed
U.S. consumer prices barely rose in March as gasoline prices
fell but stubbornly high rents kept underlying inflation
pressures simmering.
"It was pretty much as expected," Barkin said in an
interview with broadcaster CNBC of the report. "I put particular
focus on the core, which is still running a little over 5% year
over year. And you know, we had some good news on energy, but
there's still more to do I think to get core inflation back down
to where we'd like it to be."
The U.S. central bank raised its benchmark interest rate by
25 basis points to a 4.75%-5.00% range at its March meeting as
it nears a peak in rates following almost a year of rapid rate
hikes.
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