Fed’s Barkin Says Inflation-Rate Drop May Be Soft-Landing Signal
- June inflation data were a good sign, Richmond Fed chief says
- Consumers remain resilient, he says, citing Barbie movie
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Federal Reserve Bank of Richmond President Thomas Barkin said the greater-than-expected easing in inflation in June may be an indication that the US economy can have a “soft landing,” returning to price stability without a damaging recession.
“There is still a plausible story that inflation normalizes in short order and the economy dodges additional trauma,” Barkin said Thursday in a speech in Blacksburg, Virginia. “Certainly, last month’s inflation read was a good one and I hope it is a sign. To be sure, the Fed’s objective is not to cause a recession; it’s to reduce inflation, in line with our mandate.”