On May 16, according to the British Financial Times, the Federal Reserve Barkin said that while Fed policymakers should always remain “sensitive” to financial stability, these concerns should not take precedence over the central bank’s efforts to combat persistent inflation.
“If inflation persists, or (hopefully does not) accelerate, I see no obstacle to further rate hikes,” he said in an interview.
He noted that he would advocate for a “robust” approach that would “mitigate the damage of any potential over-correction”.
He added: “In my view, the path of rate hikes poses less of an obvious challenge to financial stability. I don’t think there’s a need to make a different decision because of financial stability risks.”