Richmond Fed President Thomas Barkin said gradual rate increases are appropriate
while unemployment is low, demand remains robust and inflation is elevated,
adding the Fed's policy direction is clear and the key issue is the pace. He
said the September meeting signaled a preference for gradual action when policy
is not clearly behind the curve and officials want more time to gather domestic
and external data. Barkin noted consumer spending has not meaningfully
retrenched and the labor market shows low hiring and low layoffs, and warned an
AI-driven surge in investment could produce demand-driven inflation that may
require policy measures if it persists.
