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 sho

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.