Will have to restrict monetary policy, question is how much

Federal Reserve Bank of Richmond President Thomas Barkin said on Tuesday that he will remain focused on actual inflation and expectations between now and the July policy meeting, as reported by Reuters.

Additional takeaways

“I supported 75 bps rate hike at June meeting.”

“Inflation is high and broad-based.”

“We want to get back to 2% goal as fast as we can without breaking anything.”

“After Michigan survey, I felt it was possible to do a 75 bps hike.”

“It was a pronounced increase in inflation last month.”

“I am also watching signals on the demand side.”

“I was in agreement with Powell’s comments at the press conference.”

“I want positive forward-looking real rates across the curve.”

“You have to be flexible.”

“Very hard to parse the impact of balance sheet reduction.”

“Economy is normalizing.”

“Lot of pressures caused by reaction to pandemic such as supply chain issues are going to settle, that will bring down pressures on inflation.”

“We are going to have to restrict monetary policy, question is how much.”

“We’ll see how much as we get into it.”

Market reaction

These comments don’t seem to be having a noticeable impact on the dollar’s performance against its rivals. As of writing, the US Dollar Index was down 0.13% on the day at 104.27.

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