The Federal Reserve (FED) Barkin: Not in a hurry to cut interest rates, cannot ignore the inflation risks brought by tariffs.

On June 21, The Federal Reserve (FED) official Barkin stated on Friday that, given the unresolved risks of new import taxes potentially pushing up inflation and the strength of the U.S. labor market and consumer spending, there is no rush to cut interest rates. In an interview with Reuters, Barkin pointed out, "I don’t think this data will rush us to cut rates... I am very clear that we haven’t hit our inflation target in four years." Businesses in Barkin's region (Richmond) still expect prices to rise later this year with the new tariffs taking effect, and import tariffs may further increase in the coming months. Additionally, he stated that the unemployment rate remains low at 4.2%, and there seem to be no signs of mass layoffs from businesses, which would undermine another goal of the FED to maintain maximum employment. Given the uncertain outcomes of the tariffs, Barkin said, "I have to say that our response must still be cautious. Caution is not hitting the brakes. It’s just not pressing the gas." (Jin10)