The U.S. Federal Reserve should quickly get interest rates up to a level where borrowing costs will no longer be stimulating the economy, and should raise them further if high inflation proves persistent, Richmond Fed President Thomas Barkin said on Tuesday.
“How far we will need to raise rates, in fact, won’t be clear until we get closer to our destination, but rest assured we will do what we must to address this recent bout of above-target inflation,” Barkin said in remarks prepared for delivery to the Money Marketeers in New York. “The best short-term path for us is to move rapidly to the neutral range and then test whether pandemic-era inflation pressures are easing, and how persistent inflation has become. If necessary, we can move further.”
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