Fed’s Barkin Says He’s Willing to Raise Interest Rates Again If Needed

(Bloomberg) — Federal Reserve Bank of Richmond President Thomas Barkin said he was still looking to be convinced that inflation has been defeated and he was willing to raise interest rates further if needed.

“I do want to learn more about what’s happening with all these lagged effects. But I also want to reduce inflation,” he said in an interview Tuesday on Bloomberg Television with Michael McKee. “And if more increases are what’s necessary to do that I’m comfortable doing that.”

Barkin, who is not a voter this year on the policy-setting Federal Open Market Committee, was speaking on the sidelines of the Atlanta Fed’s annual financial markets conference on Amelia Island, Florida.

Policymakers raised rates by a quarter percentage point at a meeting earlier this month, bringing their benchmark to a target range of 5% to 5.25%, and signaled they may be ready to pause their tightening cycle.

“There’s a plausible story that we get inflation down, due to a lot of the actions that have been taken in the past – both ours and by others,” Barkin said. “But I’m still looking to be convinced on that story and it may take more.”

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