GREER, S.C. — Richmond Federal Reserve President Tom Barkin brought a blunt message on inflation to Greer City Hall on Monday, Nov. 9, telling the Greater Greer Chamber of Commerce that rising prices are still the bigger danger facing the economy.
Barkin noted that inflation has run above the Fed target of 2% for close to six years. He said firms in his district report broad cost increases, from health insurance and fuel to freight and interest rates, and many now plan to push costs they had been absorbing onto customers.
Speaking with reporters after the chamber event, Barkin declined to say what the Fed should do at its Dec. 8-9 meeting. He said he wants to see the next inflation and jobs reports first. Barkin becomes a voting member of the Fed policy committee in 2027.
He said artificial intelligence cuts both ways. If it falls short, business investment, stock prices and consumer spending could slip and unemployment could rise; if it goes further than expected, it could put more people out of work.
Barkin framed his talk around three rooms. In the boardroom, business investment rose 12.7% in the third quarter. In the kitchen, stretched families are trading down to store brands and repairing rather than replacing. Unemployment was 4.1% in October, he said, which has kept household spending steady.
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