Federal Reserve's Barkin: Rate cuts support the job market, inflation task still requires the final step.

PANews reported on February 3rd that Richmond Federal Reserve President Barkin stated on Tuesday that the Fed's interest rate cuts to date have helped "insure" the health of the job market while working to complete the "last mile" of pulling inflation back to the 2% target. Barkin said the cumulative 1.75 percentage point rate cuts since the fall of 2024 "provide some insurance to support the labor market as we work to complete the final stage of bringing inflation back to our target." He pointed out that the unemployment rate remains at historically low levels, while inflation is currently about one percentage point above the target, but is expected to fall back in the coming months. "Inflation remains above our target. It has been since 2021, and I take this continued deviation very seriously. Whatever the 'cause,' today's inflation data will have a significant impact on tomorrow's inflation." Barkin expects the economy to remain resilient in 2026, with "significant stimulus" from deregulation and tax cuts, and businesses maintaining confidence in sustained demand. The recent surge in productivity will also help curb inflation because "businesses are more resilient to higher input costs, and price pressures are relatively less."