#Balkin: Rate cut expectations weaken#

Federal Reserve Governor Barkin recently gave a speech in which he expressed optimism about the U.S. economic outlook, expecting that the upside potential for growth outweighs the downside risks. He also believes that further restrictive measures to control inflation are not needed. However, he also acknowledged that he is increasingly recognizing that long-term interest rates may not fall as sharply as previously hoped. Barkin believes that continued growth in consumer spending will keep the economy growing healthily, business sentiment is high, and the labor market balance is more likely to shift towards hiring rather than layoffs. Additionally, consumers are more cost-conscious, which will put pressure on businesses to limit price increases, continuing to push down inflation. Despite this, inflation has not yet returned to the Fed's 2% target, so the Fed still needs to continue its efforts.