Richmond Federal Reserve President Thomas Barkin said on Tuesday that 2% inflation remains an achievable target, arguing it is “not a unicorn” and that policymakers believe “we can hit it”. Speaking at Howard University, he also said Federal Reserve officials are factoring the impact of AI investment into their assessment of US inflation dynamics.
Enduring Inflation and Policy Response
Barkin described inflation as “enduring” and said that taking action “makes sense”. He added that ongoing shocks appear to be continuing, reinforcing the case for policy steps aimed at bringing inflation back to 2%.
