Richmond Fed president: Supported Fed pause to figure out 'how we should be leaning'

• Richmond Fed President Tom Barkin supported the Fed's pause to 'figure out how we should be leaning', indicating a data-dependent approach to future rate decisions.
• Barkin noted that progress on inflation was at risk of stalling even before the oil price spike and that high gas prices are unsettling for consumers, affecting travel and shipping.
• He also pointed to disinflationary forces, including businesses' loss of pricing power, lower housing costs, easing wage pressure, and higher productivity, potentially aided by AI, which could lead to more jobs in time.

Richmond Fed President Tom Barkin supported the recent Fed pause to assess future policy direction, noting the funds rate is at the higher end of neutral. He highlighted ongoing inflation risks from PCE data and oil prices, but also disinflationary factors like businesses' loss of pricing power, lower housing costs, and easing wage pressures. Barkin also sees AI as a potential boost to productivity and jobs.