Barkin Says Fed May Need Terminal Rate Above 5% to Cut Inflation

Federal Reserve Bank of Richmond President Thomas Barkin said a strong labor market and stubborn inflation means the central bank may need to raise rates above 5%, though it may slow its pace of increases.

“The market remains tight and that means there’s still more work to do,” Barkin said in an interview on CNBC Television on Friday, referring to jobs figures out earlier in the morning. “We need to do whatever we need to do with the rates to get inflation back to target, and so I start with inflation.”