WOODBRIDGE, Va. (Reuters) – “Festering” inflation remains a bigger threat to the economy than the risks of Federal Reserve rate hikes going too far and causing unnecessary damage in the effort to control it, Richmond Fed President Thomas Barkin said on Friday.
“At this point the risk of inflation festering feels like a bigger risk than inflation coming down on its own and us having oversteered,” Barkin said in remarks to reporters after a chamber of commerce event.
Barkin said he was reserving judgment on the proper rate increase for the Fed’s next meeting, but that data released Friday showed inflation continued to be both broad and persistent.
(Reporting by Howard Schneider; Editing by Chris Reese)