Multiple Federal Reserve regional presidents speak out, Barkin suggests a more cautious approach to interest rate cuts

According to the Zhitong Finance APP, on Friday, three Federal Reserve chairpersons delivered speeches, respectively discussing inflation trends, interest rate adjustments, and the development of financial technology.

Richmond Fed President Barkin: Inflation will decline, but rate cuts need to be cautious

Richmond Fed President Tom Barkin stated that he expects core inflation to continue to decline next year, despite recent stubborn inflation data. He mentioned that consumers are signaling limited pricing power to businesses by purchasing promotional items, choosing lower-priced goods, and going to discount stores.

Barkin pointed out that the inflation base was high in the first quarter of this year, while more optimistic inflation data may appear in the same period next year. At the same time, he hinted that rate cuts may need to be more cautious. He divided rate cuts into two phases: "recalibration" and "normalization," with the current phase being recalibration. He quoted Dallas Fed President Lorie Logan's metaphor, comparing the rate-cutting process to "a captain slowing down as they approach the port," emphasizing the need for careful action.

Regarding whether to cut rates in December, Barkin did not make a clear statement, only noting that the current policy stance is "tight enough." Additionally, he mentioned that the comprehensive tariffs proposed by Trump could impact inflation, but the specific effects are still difficult to assess.

Chicago Fed President Goolsbee: Expects significant rate cuts next year

Chicago Fed President Austan Goolsbee stated in an interview with foreign media that he expects the Federal Reserve to cut rates by another 25 basis points this year and further by one percentage point next year. Goolsbee mentioned that according to the dot plot forecast from September, the Fed's policy rate is expected to drop to 4.4% by the end of this year and further to 3.4% by the end of next year.

He believes that this rate-cutting path aligns with the expectations of the 19 policymakers at the Fed and may create a more favorable monetary policy environment for economic growth.

Boston Fed President Collins: Focus on the risks and opportunities of financial technology

Boston Fed President Susan Collins emphasized the potential impact of technological innovation on the financial system. At an event at the Boston Fed, she stated that the technological advancements brought by financial technology could create a virtuous cycle for the financial system, but they also come with "real and significant risks and challenges."

Collins believes that a more efficient financial system can adapt to economic changes, which in turn can promote economic growth. However, she did not directly comment on monetary policy or the economic outlook in her speech