Prefers gradual rate hikes… Two Fed presidents emphasize price stability

Two Federal Reserve regional bank presidents called for gradual interest rate increases to restore price stability, with Richmond Fed President Thomas Barkin saying on Wednesday that a gradual approach is reasonable because inflation remains too high and is not clearly declining. The remarks come as analysts suggest that slower artificial intelligence investment, following Democratic control of Congress, could ease price pressures. Markets are watching rate futures pricing, equity moves and employment data for signals on the pace of further hikes.