Barkin is the president and CEO of the Federal Reserve Bank of Richmond
- longer-term rates have evidently increased in reaction to global
growth and inflation forecasts.
- we’ll hold rates the
same until we pass our three-part exam
The Fed wants unemployment lower, reasoning that will lead to wage pressure (higher) which in turn will drive inflation higher. Fed officials have been repeating the line they’ll hold rates until inflation (actual, not forecast) is sustainably above their 2% target.