Fed's Barkin (2027 voter) says the direction of travel for monetary policy is straightforward, but the question is the pace
ORIGINAL · NewsquawkFed's Barkin (2027 voter) says the direction of travel for monetary policy is straightforward, but the question is the paceRead originalHide original
INFLATION US businesses are facing significant cost pressures. We will see what we learn over the coming period. Years of elevated inflation have made it easier for businesses to justify raising prices. Resilience of consumer spending has been surprising given relatively flat incomes. The surge in AI investment has put pressure on supply chains, adding to inflationary pressures. Fed's Barkin says AI investment is driving demand-side inflation, which the Fed can lean against. Businesses report that cost pressures are broad-based. Business owners report that demand remains solid, with weakness limited to non-profits and the housing sector. Businesses are planning to pass increased costs on to customers.
Barkin described AI-related demand as an inflation pressure the Fed could address; businesses reported broad cost pressures, plans to raise prices, and generally solid demand.
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INFLATION US businesses are facing significant cost pressures. We will see what we learn over the coming period. Years of elevated inflation have made it easier for businesses to justify raising prices. Resilience of consumer spending has been surprising given relatively flat incomes. The surge in AI investment has put pressure on supply chains, adding to inflationary pressures. Fed's Barkin says AI investment is driving demand-side inflation, which the Fed can lean against. Businesses report that cost pressures are broad-based. Business owners report that demand remains solid, with weakness limited to non-profits and the housing sector. Businesses are planning to pass increased costs on to customers.
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