Fed's Bullard: Rate Cut Supports Labor Market, Inflation Task Still Awaits Final Step

By: theblockbeats.news|2026/03/30 09:43:54
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BlockBeats News, February 3rd — Richmond Fed President Barkin said on Tuesday that the Fed's rate cuts to date have helped "insure" the health of the labor market, while efforts are underway to complete the "last mile" of returning inflation to the 2% target.

Barkin stated that the cumulative 1.75 percentage points rate cut since the fall of 2024 "provides some insurance for supporting the labor market as we move through the final stages of getting inflation back to target." He noted that the unemployment rate remains historically low, and inflation is currently still running about a percentage point above target but is expected to ease back over the coming months. "Inflation remains above our target. It has been so since 2021, and I take this persistent deviation very seriously. Whatever the 'reasons,' today's inflation data will matter for tomorrow's inflation."

Barkin expects the economy to remain resilient in 2026, with "significant stimulus" expected from regulatory easing and tax cuts, and businesses maintaining confidence in sustained demand. The recent surge in productivity will also help dampen inflation as "firms, facing higher input costs, have greater capacity to absorb them, and pricing pressures are relatively contained." (FXStreet)

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