Barkin says labor market is vulnerable, not as strong as data show
SPY•Barkin says lower inflation could help keep expectations in check
WASHINGTON, Aug. 13 (Reuters) - If headline inflation continues to drift lower month to month it should keep inflation expectations in check even though the Fed has missed its target for more than 5 years, Richmond Fed president Tom Barkin said on Thursday.
“ The more the headlines are ‘inflation coming down,’ I think that keeps expectations in check,” Barkin said, and eases the need to raise interest rates despite the long-running miss of the Fed's 2% target.
