Fed's Barkin Says Economy Firming, Inflation Risks Outweigh Jobs, More Hikes Possible

Richmond Fed President Tom Barkin said US economic conditions "are, if anything, firming," with persistent inflation driven by broad demand rather than energy or tariff shocks, keeping the central bank focused on price stability. Barkin, a non-voting member of the rate-setting FOMC this year, said in prepared remarks to the CFA Society Baltimore on September 22, 2026, that "the risks to inflation outweigh the risks to maximum employment." The Fed raised its policy rate to 3.75%-4.00% last week. Barkin said the quarter-point hike "will help" return inflation to the 2% target, adding, "Will additional hikes be required, and how many? We'll see." Investors expect further increases. Barkin said even "passing" shocks are proving persistent, with much of the Personal Consumption Expenditures Price Index rising above a 3% annual rate. He cited strength in defense, manufacturing and bank lending pipelines beyond AI data centers.