<p>Thomas Barkin, President of the Federal Reserve Bank of Richmond in the United States, said he still believes there is upward risk of inflation, but he supports lowering interest rates as the labor market cools. He stated that &#34;very good&#34; data will be needed in the next six months to achieve the Fed's 2% target for year-on-year inflation. &#34;If the numbers are just pretty good, not very good, then there is a risk that we may stabilize at a level above 2%.&#34; &#34;In fact, I think a significant part of the economy is prepared for a rate cut cycle to begin.&#34; (Bloomberg)</p>

<p>Federal Reserve Bank of Richmond President Thomas Barkin said that despite the upward risks of inflation, he supports lowering interest rates during a cooling phase in the labor market. He pointed out that "very good" data will be needed in the next six months to achieve the Fed's 2% inflation target. He warned that if the data only shows "quite good" performance, there may be a risk of inflation stabilizing above 2%, and believes that the economy is prepared for a rate-cutting cycle</p>

Richmond Fed President Barkin: Inflation still poses upside risks