Barkin Says Economy Healthy With Key Questions Around Job Market

Federal Reserve Bank of Richmond President Thomas Barkin said the US economy is in good shape, though it’s unclear whether the labor market is getting back to normal rates of hiring or more seriously deteriorating.

Barkin spoke after the July employment report showed non-farm payrolls rose by 114,000 — one of the weakest gains since the pandemic — and the unemployment rate unexpectedly climbed for a fourth month to 4.3%. Stocks prices fell while bonds rallied, and futures traders priced in the possibility of an aggressive round of rate cutting through the end of the year.