Fed's Barkin Says Rate Direction 'Straightforward,' Pace Is the Open Question

Richmond Federal Reserve President Tom Barkin said Friday the direction of U.S. monetary policy is "straightforward" given high inflation and solid demand, but the pace of future rate increases remains unsettled. "Inflation's high, demand is solid, unemployment is relatively low," Barkin said on SiriusXM's Business Briefing. "The question, though, is pace." Barkin said businesses across his mid-Atlantic and southeastern district report rising cost pressures and a willingness to pass them along, with booming artificial intelligence investment adding to demand and prices. "There are a lot of cost pressures that are hitting American businesses," he said, citing diesel fuel, computer chips and skilled-labor wages, adding that four or five years of elevated inflation make price increases easier to justify. The Fed held rates steady this week but revised its statement, which analysts read as a signal of coming hikes. Investors expect a quarter-point increase as soon as the December 8-9 meeting. Barkin does not vote on policy this year but becomes a voter next year.