The Federal Reserve (FED) Bakhin: New tariffs may raise inflation, and the current job market is strong, so there is no rush to cut interest rates.

[Bitpush] According to reports, The Federal Reserve (FED) official Barkin stated on Friday that, given the unresolved risks of new import tariffs potentially raising inflation, and the strong U.S. job market and consumer spending, they are not in a hurry to cut interest rates. In an interview with Reuters, Barkin pointed out, “I don’t think this data will make us rush to cut rates… I am very aware that we have not reached our inflation target for four years.”

Businesses in the region where Balqin is located (Richmond) still expect prices to rise later this year as new tariffs take effect, and import tariffs may increase further in the coming months. Furthermore, he stated that the unemployment rate remains low at 4.2%, and there appear to be no signs of large-scale layoffs among businesses, which would undermine another goal of the Federal Reserve (FED) to maintain maximum employment.

Given that the final outcome of the tariffs is still undecided, Barkin stated, I have to say that our response must remain one of wait and see. Waiting and seeing is not hitting the brakes. It simply means not stepping on the gas.