Fed's Barkin: rate decisions need to be "finely tuned"

Investing.com -- Federal Reserve Bank of Richmond President Thomas I. Barkin said Tuesday that upcoming rate decisions will need to be "finely tuned" given risks to both the Fed’s unemployment and inflation goals.

Barkin noted that the current policy rate is within the range of neutral, while emphasizing that "both sides of the Fed’s dual mandate bear watching."

The Richmond Fed chief pointed out that inflation has decreased but remains above the central bank’s target. He also highlighted that unemployment remains low, but added that policymakers "do not want the job market to deteriorate much further."

According to Barkin, last year demonstrated the economy’s resilience, though he observed that demand and job growth are narrowly focused on certain industries, and sentiment has declined.

Looking ahead to 2026, Barkin expressed optimism, saying he expects last year’s uncertainty to diminish, which should build confidence among consumers and businesses. He added that tax changes, deregulation, and the impact of rate cuts should all provide stimulus to the economy this year.

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