Tom Barkin, Speech: Beyond Today’s Inflation Storm

“Now, with inflation persisting and broadening, we see clearly that it is time to normalize our monetary policy stance. At our last meeting, the Fed decided to raise interest rates 25 basis points, and the median Federal Open Market Committee member forecasted seven rate increases this year and three to four next year. These forecasts project inflation to be contained as pandemic pressures ease and rates move just past the median estimate of neutral.”

“How far we will need to raise rates in fact won’t be clear until we get closer to our destination, but rest assured we will do what we must to address this recent bout of above-target inflation. And this commitment does not necessarily require a hard landing. In fact, it might help avoid one by convincing individuals and firms that the Fed is committed to our target, thereby cementing inflation expectations.”