Fed’s Barkin: no need for possible U.S. recession to be ‘calamitous’

1 min read
FILE PHOTO: Federal Reserve Bank of Richmond President Thomas Barkin poses during a break at a Dallas Fed conference on technology in Dallas

(Reuters) – The U.S. Federal Reserve’s commitment to raising interest rates in order to bring inflation back down to its 2% goal will not necessarily result in a severe economic downturn and brings some benefits, Richmond Fed President Thomas Barkin said on Tuesday.

“A recession is obviously a risk,” Barkin said during an event at the Huntington Regional Chamber of Commerce in West Virginia. “It doesn’t have to be like a 2008 recession. It doesn’t need to be calamitous, we’re out of balance today…returning to normal might actually mean products on shelves, cars on lots and restaurants fully staffed.”

(Reporting by Lindsay Dunsmuir; Editing by Chizu Nomiyama)