Richmond Fed President expects limited rate cuts

Thomas Barkin, President of the Federal Reserve Bank of Richmond, said he expects only limited cuts to interest rates in the coming period, given his outlook that the US economy will see only minor changes through year-end.

In an interview with Bloomberg TV on Tuesday, following his participation in an event in Virginia, Barkin explained that any modest movement in economic activity would necessarily translate into only modest adjustments in interest rates.

He added that his expectations could change depending on incoming data, but declined to comment on his stance for the Fed’s September meeting, noting only that his estimates are based on data available at the time.

His remarks came as markets widely anticipated a 25-basis-point cut at the September meeting, after Fed Chair Jerome Powell last week flagged mounting risks in the labor market and the potential need for policy easing.