Federal Reserve's Barkin: May PCE Up 4.1%, Inflation Still Well Above 2% Goal

BlockBeats News, June 29, Richmond Fed President Barkin said in an interview with Bloomberg at the Aspen Ideas Festival that May's PCE rose by 4.1% year-on-year, the largest increase since April 2023, stating that "these numbers are too high."

After the US-Iran ceasefire, oil prices have fallen slightly, easing short-term price pressures. However, Barkin warned that inflation has spread from the energy sector to a broader economic front. The expansion of AI infrastructure demand, stickiness of service sector prices, and corporate pricing inertia all contribute to sustained upward pressure.

The Fed kept interest rates unchanged this month, but internal divisions have increased, with several officials suggesting the possibility of another rate hike later this year. Barkin emphasized that a restrictive policy stance is still necessary, and a judgment on future economic trends will need to be made over the next few months.