Economy maintains trajectory, businesses on sidelines: Fed’s Barkin

Published 27/05/2025, 15:10
Economy maintains trajectory, businesses on sidelines: Fed’s Barkin

Investing.com -- Tom Barkin, the President and CEO of the Federal Reserve Bank of Richmond, addressed the state of the U.S. economy and business sentiment during an interview on Bloomberg Television on May 27, 2025.

Barkin stated that the published data indicates the economy is following the same trajectory as it has over the past year or two. He also noted that businesses are largely refraining from active participation, choosing to stay on the sidelines.

Barkin also addressed the impact of government spending cuts. He highlighted that these cuts are affecting employment and job postings, particularly in the Washington D.C. area.

The Federal Reserve Bank of Richmond’s CEO further discussed consumer sentiment, pointing out that consumers are anticipating inflation. While this anticipation has impacted sentiment, Barkin noted there is no evidence yet that this has translated into reduced spending.

In conclusion, Barkin stated that he is waiting to see what happens with inflation and jobs in the near future. The comments provide an insight into the current economic conditions and the factors influencing business and consumer behavior.

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