Federal Reserve's Barkin: Interest rate cuts to support employment market inflation target still to be achieved

Richmond Fed President Barkin said that the Fed's cumulative 1.75 percentage point interest rate cuts so far have provided support for the job market, while also working to bring inflation back to its 2% target. He pointed out that the unemployment rate is still at a historical low, inflation is about one percentage point higher than the target, and it is expected to fall in the coming months. Barkin expects the economy to remain resilient in 2026, with significant stimulus from regulatory easing and tax cuts, and productivity gains helping to alleviate inflationary pressures.