Fed's Barkin (2027 voter) says still an open question whether the Fed needs to raise rates to restore 2% inflation, or whether it is already on a path down

There are also reasons to think price pressures are embedded, with either weakening demand or a rate increase needed to meet the Fed's target. Strong arguments that inflation will ease, given modest compensation pressure and tariff, oil and other shocks likely to subside Employment continues to keep households spending, while those who own homes or equities have enjoyed "remarkable" growth in wealth. Aspects of US economy remain a mystery as consumers and overall activity, defy shocks. Does not say if he thinks rates will need to climb, but notes "many" at Fed feel current level is restrictive enough to bring inflation down. AI is allowing firms to experiment with reducing headcount, but with strong earnings there's little pressure to lay off workers Business investment seems "impervious" to interest rates, costs or uncertainty. Businesses have concluded they can't afford to wait on investments anymore despite uncertainty.