(Finance) – The President of the Federal Reserve Bank by Richmond, Thomas Barkinsays that the central bank needs more time to understand which direction the American economy and inflation are taking, in a context of high uncertainty about the policies of President Donald Trump.
Barkin confirmed his position in favor of other rates cuts this year. The increases, however, would require overheating of the economy, but at the moment, he explained, there is no evidence of overheating. The governor expects a significant drop in consumer prices and a strong consumer expenditure.
Many of Trump’s policies, he underlined, are adding uncertainties to the economy. It is difficult to know what the impact of the duties will be. The trend, he said, is to see what happens and react accordingly. “My propensity – he clarified – is to see what happens and react appropriately”.