FED Official Barkin’s Statement on Interest Rate Decisions: He Shared His Expectations for the Next Meeting!

Richmond Fed Chairman Thomas Barkin made some statements on Thursday about the economic outlook and monetary policy in the shadow of the recent turmoil in the banking sector.

Thomas Barkin Says There Is No Chance Of A 50Bp Increase At The Next Meeting After The Credit Suisse Events

Barkin, who does not have a vote on the Federal Open Market Committee (FOMC), which sets policy this year, said he expects the results from Silicon Valley Bank’s (SVB) bankruptcy review to be incorporated into its audit practices.

He also stated that the Credit Suisse turmoil eliminated the chance of a 50 basis point increase at the next meeting.

Barkin said he still has no opinion on whether a rate hike is appropriate at the next meeting, scheduled for 2-3 May, because there is too much information to gather by then.

Barkin noted that inflation is still “hot” and it’s hard to imagine inflation falling without demand falling. Barkin said he sees several reasons why it may take time for inflation to return to the Fed’s 2% target, such as businesses becoming more daring to raise prices.

Barkin, 61, is an American central banker who has served as the eighth chairman of the Richmond Fed since January 1, 2018.

Barkin spent 30 years at global management consulting firm McKinsey & Company in increasingly senior positions, including global chief financial officer (CFO) and chief risk officer. He also served on the board and chairman of the Atlanta Fed.

*Not investment advice.