Fed/Barkin: Caution Required in Declaring Victory Over Inflation Due to Wages and Potential Tariffs

Richmond Fed President Tom Barkin stated that the likelihood of high union wage agreements and an increase in tariffs are among the uncertainties that may make U.S. Central Bank officials more cautious in thinking they have won the battle against high inflation. Barkin noted, "Being thoughtful, gradual, systematic, and methodical about declaring victory is important. Declaring victory is not a bad decision, as there could be cost pressures from wages, tariffs, or whatever else. On the other hand, you cannot ignore the things that are bringing down inflation." Barkin did not indicate whether he supports another rate cut at the Fed's December meeting.