Fed's Barkin says tempering business expectations about inflation can cool price pressures

BALTIMORE, Sept 22 (Reuters) - Federal Reserve rate hikes and the threat of more to come could temper business inflation expectations and cool price increases as firms negotiate over coming year budgets, Richmond Fed President Tom Barkin said on Tuesday, noting a way to ease inflation without necessarily slowing the economy.

As firms deliberate over pricing strategies, "a big reference point in that fight is your expectations of what inflation is going to be next year," Barkin said in comments to reporters at a CFA event. "If you expect inflation to be higher, you price higher. If you expect inflation to be lower, you price lower."

(Reporting by Howard Schneider; Editing by Chris Reese)