Barkin: Risk of inflation ‘festering’ worse than of Fed overdoing rate increases

WOODBRIDGE, Va., Sept 30 (Reuters) – “Festering” inflation stays an even bigger risk to the financial system than the dangers of Federal Reserve charge hikes going too far and inflicting pointless harm within the effort to manage it, Richmond Fed President Thomas Barkin mentioned on Friday.

“At this level the danger of inflation festering looks like an even bigger threat than inflation coming down by itself and us having oversteered,” Barkin mentioned in remarks to reporters after a chamber of commerce occasion.

Barkin mentioned he was reserving judgment on the right charge improve for the Fed’s subsequent assembly, however that information launched Friday confirmed inflation continued to be each broad and protracted.

Reporting by Howard Schneider
Modifying by Chris Reese

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