Richmond Federal Reserve Chairman Thomas Barkin said today that a strong job market and stubborn inflation mean the central bank may need to hike rates beyond 5%, although it could slow the pace of hikes. .
Interviewed by CNBC, Barkin said that rate hikes have pushed policy to the point where the Fed has now moved from foot on the accelerator to the brake. “I am ready to do that, and I think the implication of that is probably a slower pace of hikes, a longer pace of hikes and a potentially higher point,” the Fed said.
The Fed made its fourth consecutive 0.75 percentage point rate hike this week and indicated further hikes are on the way.