Richmond Fed president says it is not yet clear when the Central Bank has to cut the ratios. ‘It’s really hard to drive when foggy’

The best federal reserve official, the mass uncertainty created by President Donald Trump’s tariffs provided for hiring and spending, threateningSlows the economyHe added that whether the central bank should not reduce the main interest rate, it is not yet clear.

President of the Federal Reserve Richmond branch Tom Barkin, said that the enterprises are still not engagedDick work cutsor other behaviors typical of the recession.

“The road I described, it’s really hard to drive when foggy,” said Barkin Doamoun County, the Virginia Chamber of Commerce. “This is what I saw on the business side. It is frozen, non-authorized expenses are retracted but not the main supports.”

Barkin and other fed speakers, Friday stressed that the Central Bank faced the moment. If tariffs increase inflation, the fed raised the ratios – or grew further. However, if the tasks condemn the economy, the fed usually cut the ratios.

Wednesday, the chairman of Jerome Powell gossip As higher inflation and higher unemployment risks rise and the next movement of the nutrition is more clarified to the end of the economy. Powell spoke after nutrition and kept the main degree for the third straight congregation.

Trump, it continued to drive Powel forNot cutting ratesOver time, it can reduce debt costs for consumers and enterprises.

Trump causes a reduction in the economy for claiming that the economy did not suffer from high inflation fed to dramatically increasing debt expenses in 2022 and 2023.

However, the most likely reason to reduce the main rate in the next month in the coming months will fall in the economy in the economy instead of a sharp decline in the economy. As companies look at the increase in higher tasks – about half of the import of imports are parts used by American companies – a widespread processing, unemployment and decline.

Gregory Daco, Chief Economist UglyA consultant firm should reduce the proportions of the Fed soon, because the economy slows down and slowly and slowly and flirting. “

The main problem for the Fed determines which risk is larger for the economy, inflation or unemployment.

Barkin said it was too early to say that the need for lower debt costs to increase growth.

“We have risks on the inflation side and as we have seen, we have risks associated with the unemployment, then a risk is more important than the other, saying it is almost as a guess,” Barkin said.

Barkin is one of the 19 officials participating in the Fed’s eight-year meetings. Only 12 of these members vote on the decision. Barkin is not one of the voters this year.

Other fed authorities reflected a careful message of Friday Bark.

Michael Barr, who is a member of the Washington-based board of the Fed, said that the tariffs can increase inflation for a long time, it is likely to feed. This is unlike some economists that think that the tasks will temporarily push the prices.

“The higher tariffs may cause global supply chains and cause inflation-resistant pressure,” those who say, “said the conference in Reykjavik, Island.

However, Barkin, inexplosion turned out to have taken a difference in inflation. Producers and retailers of cash with cash consumers offer to pay a higher price for a long time that they can force additional costs to eat.

“This means that it’s great to say you will pass it, but as you think it’s not easy to pass it,” he said.

This story was first displayed Fortune.com

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