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Richmond Fed president says it's not yet clear when the central bank should cut rates. 'It's really hard to drive when it's foggy'

Tom Barkin, president of the Federal Reserve's Richmond branch, said businesses have turned cautious.
Richmond Federal Reserve President Thomas Barkin expressed caution about cutting interest rates, stating that it's not yet clear when such a move would be appropriate. In an interview with Fortune, Barkin emphasized the need for more evidence that inflation is sustainably moving towards the Fed's 2% target before considering rate reductions. He noted that while inflation has shown some signs of cooling, the economy remains strong, and the labor market is robust, which complicates the decision-making process. Barkin's comments align with the broader sentiment among Fed officials who are taking a wait-and-see approach, prioritizing the control of inflation over immediate rate cuts.

Read the Full Fortune Article at:
[ https://fortune.com/2025/05/09/richmond-fed-president-says-its-not-yet-clear-when-to-cut-interest-rates/ ]