Fed’s Barkin ‘open’ to possibility of inflation declining ‘in short order’

Live updates

1. 1h ago

   Fed Officials Warn of Painful Fight Against Persistent Inflation

   Federal Reserve officials indicate that taming inflation may be painful and that a single rate hike might not suffice. Richmond Fed President Barkin remains open to the possibility of inflation declining in short order, but he warns that supply shocks are not proving short-lived and leaves the door open for further rate increases. Meanwhile, Fed official Collins warns that inflation risks remain elevated and could be notably higher. These hawkish signals have supported the dollar while Bitcoin fell to $84,000 amid rising interest rates and oil prices.

   Why it matters

   The Federal Reserve is balancing the need to lower inflation without triggering a severe economic downturn. Current officials are monitoring whether inflation is limited to energy and tariff shocks or is more systemic. The tension between potential short-term declines and persistent supply shocks dictates the pace of future rate hikes.

   What is confirmed

   • Richmond Fed President Barkin said supply shocks are not proving short-lived.
   • Barkin stated that one rate hike may not be enough to tame inflation.
   • Fed official Collins warns of elevated inflation risks.
   • Bitcoin pulled back to $84,000 as interest rates and oil prices rose.

   Still unconfirmed

   • Barkin is open to the possibility of inflation declining in short order.

   What to watch next

   • Upcoming Federal Reserve interest rate decisions
   • New inflation data regarding energy and tariff shocks
   • Further shifts in bond yields and oil prices
   Sources used for this update (10)

   1. AP News — Federal Reserve official says fighting inflation likely to be ‘painful’
   2. Fox Business — Why the Fed isn't ready to declare victory on inflation
   3. The Hill — Fed’s Barkin ‘open’ to possibility of inflation declining ‘in short order’
   4. Yahoo Finance — Richmond Fed's Barkin says supply shocks aren't proving short-lived, leaves door open to further rate hikes
   5. Reuters — Fed's Barkin says economy may be firming, inflation not limited to energy, tariff shocks
   6. WSJ — Fed’s Barkin Says One Rate Hike May Not Be Enough to Tame Inflation
   7. Reuters — Fed's Collins says she supported rate hike, warns of elevated inflation risks
   8. Barchart.com — Dollar Supported by Hawkish Fed Comments
   9. CNBC — Fed's Collins warns inflation could be 'notably' higher after backing rate hike
   10. www.coindesk.com — Live updates: Bitcoin edges lower as bond yields take center stage
   confidence 90%