Fed's Barkin urges caution, viewing interest rate near or slightly below neutral

Richmond Fed President Tom Barkin stated that current interest rates are likely around or slightly below neutral, cautioning policymakers to move with care. With the federal funds rate near 4%, Barkin pointed to tension between healthy domestic demand and elevated inflation, contrasting with market expectations of 50 basis points of rate cuts over the next year. He noted the labor market reflects a low-hire, low-fire environment and affirmed he has no base case heading into the December FOMC meeting.