Federal Reserve's Barkin: Balance sheet shrinkage could be slower and last longer

2025-03-31 19:59:53
Barkin said that to cut interest rates, one needs to have confidence in inflation; now is not the time to say how many rate cuts are expected this year. Stagflation in the 1970s was characterized by misaligned inflation expectations, but that has not been seen yet. Concerned about inflation and employment, there is no rush to cut interest rates. And said that balance sheet shrinkage is likely to be slower and longer.