(Reuters) – A key U.S. government report which showed consumer prices accelerated in January but that the annual increase continued to slowly abate was in line with Federal Reserve expectations, Richmond Fed President Thomas Barkin said on Tuesday.
“It’s about as expected. Inflation is normalizing but it’s coming down slowly. I just think there’s gonna be a lot more inertia, a lot more persistence to inflation than maybe we’d all want,” Barkin said in an interview with Bloomberg TV following the release of the report.
The U.S. central bank is seen raising its policy rate at least twice more to the 5%-5.25% range, with financial markets retaining about even odds for a further quarter-point hike in the summer. The Fed’s policy rate is currently in a 4.50%-4.75% range.
(Reporting by Lindsay Dunsmuir)
