Richmond Fed President Barkin: Don’t know whether rate cut or cuts will be needed this year

Adding to his previous comments, the Richmond Fed President Thomas I. Barkin recently said that the inflation expectations are very anchored and he doesn’t know more about the need for a rate cut or rate cuts.

Key Comments:

• There is a risk the US talks itself into a recession, but sees no sign that is happening yet.
• Inflation expectations are very anchored.
• Fed policy is still modestly accommodative.
• Don’t know whether rate cut or cuts will be needed this year.

FX implications:

While latest comments from the US Federal Reserve policymakers have been a bit less dovish, Barkin’s overall neutral statements are less likely to have much impact on the US Dollar (USD) during the early Asian session