Fed’s Barkin not Worried About Rise in Inflation

The President of the Federal Reserve Bank of Richmond, Thomas Barkin, is not concerned with an overshoot in inflation due to the increased government stimulus, which he views as necessary to achieve economic recovery.

Barkin still sees some short-term price volatility, with deflationary and inflationary risks ahead, he told the Financial Times in a recent interview.

“I’m keeping my focus on medium-term [inflation] expectations.”

“I still think there are a lot of people out of work who need a bridge to the other side, and I am supportive of what we can do to help them”.

Barkin said that it is good to see inflation expectations rise, becoming closer to the Fed’s 2% target.