Tom Barkin Urges Careful Monetary Policy to Combat Inflation
Richmond Fed President Tom Barkin stated the central bank must move policy with care to address inflation risks and potential AI-driven economic volatility.
Richmond Federal Reserve President Tom Barkin stated on Monday that the U.S. central bank must move its monetary policy "with care" to address inflation, which he identified as the greatest risk to the economy. Speaking at a Greater Greer Chamber of Commerce event, Barkin declined to establish a base case for the December 8-9 meeting, noting that policymakers will await further inflation and jobs reports before deciding on action.
Barkin highlighted the volatility of artificial intelligence investments as a consequential risk to the broader economy. He warned that if AI technology "underdelivers," it could curb business investment and consumer spending. Conversely, he noted that if the technology "overdelivers," it might displace more workers than expected, potentially impacting the labor market and the Federal Reserve's goal of maximum employment.
