Fed's Barkin 'open' to possibility of inflation declining 'in short order'

A Federal Reserve official suggests inflation may ease sooner than expected, though persistent price pressures could linger due to ongoing global disruptions. Speaking at a financial conference, the Richmond Fed president acknowledged recent economic shocks as a factor in sustained inflation levels. While expressing cautious optimism about a potential near-term decline, he warned that elevated prices may not fully retreat without further stabilization. The remarks highlight the central bank’s balancing act between taming inflation and managing risks from geopolitical tensions.

Federal Reserve Bank of Richmond President Thomas Barkin said Tuesday that inflation could decline “in short order,” but he acknowledged prices could remain elevated amid the Iran war. “I’m open to the possibility that inflation could come back down in short order,” Barkin told the CFA Society’s Baltimore branch. Barkin noted recent “shocks” to the...