Fed up, Fed’s Barkin believes US economy firming but inflation risks persist

US economic conditions are firming, with continued consumer spending and strength beyond the artificial intelligence sector keeping the Federal Reserve focused on inflation, Richmond Fed President Tom Barkin said on Tuesday.

“The risks to inflation outweigh the risks to maximum employment. That’s why we raised rates,” at last week’s meeting, Barkin said in remarks prepared for the CFA Society Baltimore. He added that the quarter-percentage-point increase “will help” restore inflation to the Fed’s 2% target.

“Will additional hikes be required, and how many? We’ll see,” said Barkin, who is not a voting member of the central bank’s rate-setting Federal Open Market Committee this year.

The Fed last week raised its policy interest rate to the 3.75%-4.00% range, with investors anticipating more increases.