Richmond Fed Pres. Barkin speaking in a FT article
- Shrugs off inflation risks from stimulus plan
- US economy still needs support despite fears of jump in prices
- Considers any price rise as temporary
- Sees need for continued support despite fiscal aid
- He expected short-term price volatility, but stress that he saw deflationary as well as inflationary risks on the horizon
- sees any price rises as temporary as a result of broad trends in technology and globalization keeping prices suppressed
Comments from Fed officials continue to point toward an extended period of accommodation helped by the desire to move toward full employment as inflation remains subdued which continues to sound like a Goldilocks scenario.
