Fed's Barkin wants to return inflation to target 'relatively quickly'
A top Fed official said that he would be comfortable supporting further rate hikes if incoming data did not show slower demand returning inflation to 2% "relatively quickly".
However, he went on to add that: "I am still looking to be convinced, both that demand is settling and that any weakness is feeding through to inflation.
"We will learn a lot more over the next few months."
Barkin's remarks had been prepared for a speech before the Maryland Government Finance Officer Association.
Among other things, the central banker pointed out how the monthly median PCE inflation reading had yet to come in at a level consistent with the Fed's 2% target for any month since spring 2021.
Furthermore, the process of rebalancing demand and supply following the pandemic had been "slow" and companies had rediscovered the "pricing lever".
Even so, he said that the slower pace of hikes was akin to "slowing your boat as you approach the dock".
"If coming data doesn’t support the plausible story, I’m comfortable doing more. The experience of the ‘70s provides a clear lesson: If you back off inflation too soon, inflation comes back stronger, requiring the Fed to do even more, with even more damage."
Barkin was not a vote-wielding member of the Federal Open Market Committee in 2023.