TechFlow news, on August 26, according to Jinshi Data, Thomas Barkin, President of the Federal Reserve Bank of Richmond and a voting member of the FOMC this year, said in a recent comment that the Fed may cut interest rates by 25 basis points in September—rather than the 50 basis points some analysts expected. Barkin expressed optimism about easing inflationary pressures, noting that inflation has continued to decline over the past four months and that this trend has spread across various sectors of the economy, no longer limited to goods.
He pointed out that the current U.S. corporate strategy of "low hiring, low layoffs" is unsustainable and that layoffs could occur if the economy weakens. Barkin emphasized that the U.S. unemployment rate has steadily risen to 4.3%, driven primarily by slower hiring and an increase in job seekers. He stated that the Fed will adopt a "trial-and-error" approach to rate cuts to guard against downside risks in the labor market, while remaining cautious that rate cuts could stimulate demand in areas such as housing and potentially reignite inflation.
