Fed's Barkin: If more hikes needed to bring down inflation, I'm comfortable with that

Thomas Barkin, president of the Federal Reserve Bank of Richmond, told Bloomberg on Tuesday that he would be comfortable with more rate increases if that's what is needed to bring inflation down, per Reuters.

Key takeaways

"I like the optionality implied in the statement from last meeting."

"Deposit flows are stable at banks in my district, encouraged by the resilience I've seen."

"Commercial office sector is where you hear the most concern."

"Most people I talk to anticipate a downturn over coming quarters."

"When it comes to downsizing, businesses are quite cautious, reluctant to let staff go."

"Businesses will not give up pricing power unless they're forced to do it."

Market reaction

The US Dollar Index clings to modest recovery gains slightly above 102.50 following these comments.