Fed's Barkin (2027 voter) says clear sense that the job market has loosened; hard to calibrate what's going on with labour supply; inflation data has been consistently above target

Barkin's comments indicate a dovish stance, highlighting a loosening job market and persistent inflation above target levels.

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Fed's Barkin (2027 voter) says clear sense that the job market has loosened; hard to calibrate what's going on with labour supply; inflation data has been consistently above target

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  • Firms say they have very limited pricing power.
  • Hopeful inflation retreating to 2%, but wants data to show this clearly.
  • Monetary policy is currently well positioned for risks
  • AI will be an added driver of higher productivity
Context

His observations about limited pricing power among firms suggest challenges for sustaining inflation control, which may influence future rate path expectations. Traders should monitor the implications for the USD and cross-assets, as well as the potential for shifts in market sentiment regarding monetary policy.

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