Richmond Fed President Tom Barkin signaled that interest rates are near neutral and declined to provide a base case for the upcoming December policy meeting.
Richmond Fed President Barkin said on November 9 the policy rate is likely around or slightly below neutral, which argues against further rate cuts, but he offered no base case for the December meeting. With no directional signal, the speech is unlikely to move the Dollar materially in the coming days. Its mildly restrained tone on policy ease may limit downside pressure already visible today, with USD weaker against most majors except JPY and CHF.
Richmond Fed President Tom Barkin stated on November 9 that the current policy rate is likely around or slightly below neutral. Speaking in South Carolina, Barkin noted there is no base case for the December meeting and highlighted that government debt, rather than consumer debt, has reached historic levels.
No. He explicitly said there is no base case for the December meeting and noted the current policy rate is likely around or slightly below neutral, leaving the decision open.