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 "very good" data will be needed in the next six months to achieve the Fed's 2% target for year-on-year inflation. "If the numbers are just pretty good, not very good, then there is a risk that we may stabilize at a level above 2%." "In fact, I think a significant part of the economy is prepared for a rate cut cycle to begin." (Bloomberg)