Fed’s Barkin says rate panel doesn’t always follow chair’s lead - Bloomberg

Published 15/07/2025, 21:10
© Reuters.

Investing.com -- Federal Reserve Bank of Richmond President Tom Barkin stated that the Federal Reserve’s interest-rate-setting panel does not necessarily take direction from the chair, while expressing confidence that the next central bank leader will pursue appropriate monetary policy.

The comments come as President Donald Trump has repeatedly called for the Federal Reserve to cut interest rates. Trump will have the opportunity to nominate a new central bank head when Jerome Powell’s term as chair expires in May. The president has indicated he plans to select someone willing to lower rates, which has sparked concerns about the Fed’s independence.

Trump has stated he will choose a candidate who supports rate cuts, raising questions about potential political influence on monetary policy decisions.

Speaking after a recent address, Barkin told Bloomberg News that recent inflation data showed increasing price pressures, with more expected to emerge. He noted uncertainty about companies’ ability to pass tariff costs to consumers who may be resistant to further price increases.

"You’ve got suppliers who are emboldened by the inflationary experience and know they’re having cost pressures and feel empowered to try to pass it on," Barkin said. "And you’ve got consumers who are exhausted by inflation, who are already trading down."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.