Consumer spending continues despite constraints, says Fed’s Barkin

Published 16/10/2025, 13:58
© Reuters.

Investing.com -- Consumers are still spending money due to low unemployment and wage gains, but face more constraints than during the pandemic years, Richmond Fed President Thomas Barkin said Thursday.

"While consumers are still spending, we are not in 2022 anymore. Consumers are not as flush," Barkin told the Aiken Chamber of Commerce in South Carolina. "They are making choices."

During the virtual event, Barkin noted that productivity growth appears to be improving significantly, which could potentially contain inflationary impacts from trade tariffs.

The Richmond Fed president also observed that price setters are reluctant to make price increases too visible to consumers.

Business dynamics remain healthy with stock prices trending upward, according to Barkin. However, he pointed out that companies maintain a cautious stance, operating in what he described as a "low-hiring, low-firing environment."

Barkin added that supply and demand for labor are currently shrinking at the same rate in the economy.

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