Barkin is the president and CEO of the Federal Reserve Bank of Richmond, he has some comments crossing on the wires.
Speaking in a Bloomberg TV interview.
- you want yields to respond to what happening in the economy
- yields reflecting good news on vaccines, fiscal aid
- really hopeful that we’re at the back end of pandemic
- the Fed’s interest-rate dot plot is not Federal Open Market Committee policy
- Fed has tools to handle unwanted inflation
- inflation is not a one-year phenomenon, it’s multi-year
- expect to see price pressures in 2021
- expect strong demand, met by some supply-chain issues
- the US economy will have strong spring and summer
Re that headline I put in the, headline …. the dot plot is part of the Fed’s forward guidance. Barkin’s comments are in line with other comments from Fed officials, they are toeing the party line since Chair Powell laid down the law and told them all to shut up about tapering a month or so back.