The Federal Reserve (FED) Barkin: Not in a hurry to cut interest rates, cannot ignore the inflation risks brought by tariffs.

GateUser-6433627c · 2025-06-20T16:33:36+00:00

Federal Reserve official Barkin stated that there is no rush to cut interest rates due to new import tariffs potentially pushing up inflation and a strong job market. He pointed out that the inflation target has not been reached for four years, businesses expect prices to rise, the unemployment rate is low, and there are no large-scale layoffs. Barkin emphasized the need to maintain a wait-and-see attitude.

GateUser-6433627c

2025-06-20 16:33:36

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On June 21, The Federal Reserve (FED) official Barkin stated on Friday that, given the unresolved risks of new import taxes potentially pushing up inflation and the strength of the U.S. labor market and consumer spending, there is no rush to cut interest rates. In an interview with Reuters, Barkin pointed out, “I don’t think this data will rush us to cut rates… I am very clear that we haven’t hit our inflation target in four years.” Businesses in Barkin’s region (Richmond) still expect prices to rise later this year with the new tariffs taking effect, and import tariffs may further increase in the coming months. Additionally, he stated that the unemployment rate remains low at 4.2%, and there seem to be no signs of mass layoffs from businesses, which would undermine another goal of the FED to maintain maximum employment. Given the uncertain outcomes of the tariffs, Barkin said, “I have to say that our response must still be cautious. Caution is not hitting the brakes. It’s just not pressing the gas.” (Jin10)

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CryptoWorldGrandMarshal

· 2025-06-20 18:04

During an interview with Reuters, Barkin pointed out, "I don't think this data will make us eager to cut interest rates... I am very clear that we have not reached the inflation target for four years." Businesses in Barkin's region (Richmond) still expect prices to rise later this year as new tariffs take effect, and import tariffs may increase in the coming months.

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