Barkin, Federal Reserve Member: We are in no hurry to cut interest rates, and we cannot ignore the inflation risks posed by tariffs

On Friday, June 21, Barkin, a Federal Reserve member, stated that given the unresolved risks that new tariffs could fuel inflation, and with the U.S. labor market and consumer spending remaining strong, there is no need to rush into cutting interest rates. In an interview with Reuters, Barkin noted that "I don't think this data will push us to rush... I fully realize that we have not achieved our inflation target for four years."

Businesses in Barkin's area (Richmond) still expect price increases later this year as new tariffs take effect, and import duties may rise further in the coming months. Additionally, he said that the unemployment rate remains low at 4.2%, and there do not seem to be any signs of significant layoffs by companies, which could undermine another goal of the Federal Reserve, which is to maintain maximum employment.

Given the uncertainty regarding the outcomes of the tariffs, Barkin said: "I must admit that the response we need to take is to wait and see. Waiting...