Fed's Barkin (2027 Voter, Neutral) says policy rate is now at the higher end of the neutral rate estimate, still an open question about when inflation will fall to 2%
Barkin's remarks indicate a cautious approach from the Fed, emphasizing that while the policy rate is at the upper bound of the neutral range, clarity on inflation's return to 2% remains elusive.
Newsquawk European Market Wrap - 3rd February 2026
US EQUITY OPEN: NDX lags as mega-cap names see weakness despite a stellar PLTR report
Fed's Barkin (2027 Voter, Neutral) says policy rate is now at the higher end of the neutral rate estimate, still an open question about when inflation will fall to 2%
Walt Disney (DIS) Chairman Gorman says he wants to retain all former internal CEO candidates
US House Speaker Johnson and fellow leadership is indicating that they believe they have the votes to pass the funding package today, Politico's Hill reports citing sources
Open the platform and use it. The whole workspace is free to try, with no signup and no card. When you want the headlines arriving live instead of on a delay, Newsquawk Pro is £24.99 for 7 days.
Economy:
- Recent economic data has been encouraging on the demand side, employment and inflation.
- A world of no job growth is 'uncomfortable' even if unemployment rate stays low.
- Concerned about risks to employment and inflation.
- Productivity is coming not just from AI, but from companies wanting to limit hiring, adapting to past labour shortages.
Balance Sheet:
- Size of balance sheet is odd to focus on solely because it includes so many things like cash in circulation, Treasury general account, along with bank reserves.
- Open to a conversation about any aspect of the balance sheet or other Fed operations
Fed:
- Fed is facing a different question now, with inflation above target, than the Greenspan-led Fed did in the 1990s.
- Does not know Kevin Warsh well, but that Fed chair nominee seems capable and charismatic.
Government Shutdown:
- Hopes the shutdown causes only a few days of delay in data.
His acknowledgment of positive demand-side data alongside concerns about potential labor market risks reflects the delicate balancing act the Fed faces, likely leading to continued scrutiny in both fixed income and FX markets, especially around the USD's direction.
Related headlines
- Fed Chair Warsh (Q&A): Asking what changed between now and July; data has shown economy has strengthened and at Jackson Hole said inflation trends weren't passing the test, and seeing very little information since to reverse that, so have stuck with it9 hours ago
- Fed Chair Warsh (Q&A): Reiterates inflation is the problem9 hours ago
- US President Trump says Fed Chair Warsh has a tough board and he still has confidence in Warsh, also notes interest rates are too high and not appropriate5 hours ago
- [MARKET UPDATE]: Hawkish reaction with stocks, bonds and gold falling while the Dollar rises after the Fed hiked rates in unanimous decision, dot plots pencilled in one more hike this year, and Warsh emphasised commitment to price stability8 hours ago
- Fed Chair Warsh (Q&A): Sees 3 reasons bond yields have risen; 1) Economic strength; 2) Capital Expenditures and surge in capex is real; 3) Geopolitics9 hours ago
- Fed Chair Warsh (Q&A): Can't effect any individual prices in regards to oil, but what we can do, and will do, is ensure that any change in relative prices don't broaden out, don't have second and third-order effects on the economy9 hours ago
- Fed Chair Warsh says in July expressed joint readiness to act and the FOMC decided that this standard has not been satisfied and the committee's unanimous vote shows our resolve to achieve price stability on a timelier basis9 hours ago
- Fed Chair Warsh says yet for more than 5 years, inflation has been running above target9 hours ago
- Fed Chair Warsh says decision comes when the economy appears to be strengthening and is pointing in a good direction9 hours ago
- [MARKET ANALYSIS] Asia-Pac stocks trade mixed as partially weathers the hawkish FOMC meeting where the Fed hiked rates and the dotplots pencilled in another hike this year51 min ago
- [MARKET ANALYSIS] Dollar takes a breather and holds on to post-FOMC spoils1 hour ago
- [MARKET ANALYSIS] T-note futures are contained following post-FOMC selling1 hour ago
- [MARKET ANALYSIS] Oil prices are contained after retreating yesterday on supply-side headlines, while gold partially rebounds from its post-FOMC drop1 hour ago
- PRE-MARKET TAIWAN AND SINGAPORE STOCKS NEWS: Taiwan Digital Minister Lin Yi-jing recently visited Washington, D.C., and met with US officials, think tanks and major technology companies to discuss cooperation on AI and cybersecurity3 hours ago
- [MARKET UPDATE] Asia-Pac stocks begin higher and US equity futures attempt to rebound overnight despite the hawkish FOMC where the Fed hiked rates and dot plots pencilled in another hike this year4 hours ago
- CRUDE WRAP: WTI (V6) SETTLED USD 3.40 LOWER AT 102.43/BBL; BRENT (X6) SETTLED USD 2.92 LOWER AT 105.83/BBL8 hours ago
- Fed Chair Warsh (Q&A): Believe that the unemployment rate is basically running consistent with full employment and don't believe that we need to do harm to the labour markets to achieve its objective9 hours ago
- Fed Chair Warsh (Q&A): Committed to a discipline not to a decision, and today's action starts to show they are serious about it9 hours ago
- Fed Chair Warsh (Q&A): Doesn't have anything for you on discussions with Trump9 hours ago
- Fed Chair Warsh (Q&A): Was not waiting breathlessly on what any particular data was, whether it was retail sales this morning or a CPI print last week; reiterates trends matter and data points are noisy9 hours ago
The whole workspace, free to try.
Try it free