3/30, 7:16 PM (Source: TeleTrader)
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Fed's Barkin: Inflation could take time to return to target

Federal Reserve Bank of Richmond President and CEO Thomas Barkin (pictured) claimed Thursday that despite the job done so far by the United States Federal Reserve, he still sees "three reasons why it could take time for inflation to return to target."

According to the banker, the first reason has to do with the remaining "economic dislocation" caused by the pandemic; second, the companies and workers want to recover lost territory; and finally, "two years of high inflation and ubiquitous conversation about inflation have surely had an impact on firm behavior."

On the banking sector, Barkin said the broader implications of the latest developments are unclear. However, even resilient banks can affect the broader economy if they choose to limit access to credit.

Baha Breaking News (BBN) / JG