Richmond Fed President Barkin said inflation has run above the Fed's 2% target for nearly six years and that risks to the central bank's dual mandate are concentrated on the inflation side. He said firms face broad cost increases and plan to pass some costs to consumers. With demand remaining strong and inflation elevated, the direction toward tighter policy is clear but should be pursued cautiously. Barkin warned that weaker-than-expected AI progress could damp business investment, equity price

Richmond Fed President Barkin said inflation has run above the Fed's 2% target for nearly six years and that risks to the central bank's dual mandate are concentrated on the inflation side. He said firms face broad cost increases and plan to pass some costs to consumers. With demand remaining strong and inflation elevated, the direction toward tighter policy is clear but should be pursued cautiously. Barkin warned that weaker-than-expected AI progress could damp business investment, equity prices and consumption, while stronger-than-expected AI could accelerate job displacement. He will be an FOMC voting member in 2027.