WASHINGTON (Reuters) – High inflation this year may have satisfied one of the Fed’s benchmarks for raising interest rates, though there is still room for the job market to heal before rates should rise, Richmond Federal Reserve President Tom Barkin said Monday.
Under the Fed’s current policy guidance, rates will rise “when inflation hits 2%, which I think you can argue it already has, and it looks like it is going to sustain there,” Barkin said at the Roanoke Regional Chamber of Commerce in Virginia. But “there is still room to run in the labor market.”
(Reporting by Howard Schneider; editing by Jonathan Oatis)
