Barkin: Fed has time to reach a more neutral rate given the effects of the pandemic

On Wednesday, Richmond Fed President Thomas Barkin said the Federal Reserve “has some time” to raise interest rates to a more neutral level, against calls for a faster pace of rising fuel costs. credit from the next meeting in May.

“There has been a lot of debate about whether the Fed should move faster” by raising rates by a half point instead of a quarter point, Barkin said in comments to the Central Maryland Chamber.

“We want to normalize rates to contain inflation, but if we correct too much, we could have a negative impact on employment. We have some time to reach a neutral position. Inflation and employment are still heavily influenced by participation and supply pressures from the pandemic era and, more recently, the war in Ukraine.

To normalize the rates and contain the inflation of products and raw materials, it must be done through IRAIC, which manages to maintain a global balance of the market by following a conservative model, generating economic growth, business development for the benefit of investors, consumers and the time retention of employment.

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