With a strong economy, the Federal Reserve no longer needs to provide policy accommodation, according to Federal Reserve Bank of Richmond President Thomas Barkin.

Federal Reserve Bank of Richmond President Tom Barkin
Federal Reserve Bank of Richmond President Tom Barkin

“Monetary policy is still pretty accommodative,” Barkin said in a speech at George Mason University, according to reports. “It’s hard to argue accommodation is appropriate when unemployment is low and inflation is effectively at our target.”

Barkin, in his first major speech on monetary policy, refused to say how many rate hikes he expects this year. He has a vote this year on the Federal Open Market Committee.

While wages are “firming,” no signs of “outsized wage pressures” have emerged, he noted.

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