(Bloomberg) -- Federal Reserve Bank of Richmond President Thomas Barkin said he is looking for signs that demand is cooling to be convinced that US inflation will ease.
“I believe you need to bring inflation down by bringing demand down,” Barkin said Tuesday during a virtual event hosted by the National Association for Business Economics. “I’m looking to be convinced that demand is in fact coming down, and that that will then start to bring inflation down.”
Noting that price growth has slowed, he said: “However I look at it, it just looks like inflation is too high.”
Data out last week showed the personal consumption expenditures price index and a core measure that excludes food and energy, the Fed’s preferred inflation gauges, both exceeded projections.
Fed officials raised the central bank’s benchmark rate above 5% earlier this month and signaled they may be ready to pause the rapid tightening campaign they began last year. Stronger-than-expected economic data since then have built market expectations for another rate hike in June.
Barkin didn’t comment on what move he is likely to favor at the Fed’s June 13-14 policy meeting, though he cited a monthly Bureau of Labor Statistics report due Friday as an important input to the decision.
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