More from Fed’s Barkin, sees encouraging CPI, stresses policy flexibility

Richmond Fed President Tom Barkin emphasized a pragmatic approach to monetary policy decision-making on Tuesday, downplaying the significance of any single Fed meeting while highlighting positive inflation data. He noted that recent consumer price index data is encouraging and that price pressures do not appear to be re-accelerating. However, he did express concerns about some inflation components that are difficult to assess in real time, citing shelter inflation as influenced by incomplete data. Additionally, he commented on businesses gaining confidence in understanding trade policy outcomes, suggesting a slight easing of uncertainty despite lingering costs from tariffs, which he warned remain a long-term inflation risk. Barkin's remarks reinforce a message of flexibility and patience within the Fed, indicating they have room to adjust their course based on evolving data.