Fed Vice Chair Barkin Warns Inflation Expectations May Loosen Amid Recurring Supply Shocks on May 22

GateNews
According to Jin10, Federal Reserve Vice Chair Barkin warned on May 22 that repeated supply shocks are testing the "anchoring" of inflation expectations. In remarks prepared for a speech in Raleigh, North Carolina, Barkin stated that the ability of businesses and consumers to absorb the latest round of supply disruptions will determine whether the Fed can continue to overlook higher inflation without raising rates. He expressed growing concern that the U.S. may have entered a "new stage" where supply shocks become more frequent, driven by factors including geopolitical tensions, fragmented trade systems, extreme weather events, rising government debt, and other structural forces. Barkin noted the Fed's current monetary policy stance is "well-positioned" to address risks in both labor markets and inflation.
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