Fed's Barkin: Direction of rate hikes is clear; AI risks make policy pacing require more caution.
Original headline美联储巴尔金：加息方向明确，AI风险令政策节奏更需谨慎
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Richmond Fed President Thomas Barkin said the direction of U.S. monetary policy is relatively clear but the pace of rate hikes must stay cautious, citing resilient consumer demand and inflation still above the Fed's 2% target. He flagged two-sided AI risks: weaker-than-expected AI progress could cut business investment and stock prices and sap consumption, while faster-than-expected adoption could displace jobs and dampen demand, pushing the Fed to refocus on employment risks. Markets still lean toward a December hike, with Bloomberg-reported trader pricing putting the odds at about 80%. The next policy meeting is scheduled for December 8-9.
Muhabbit's AI wrote this summary in its own words from TechFlow's report and translated it from Chinese. It can get details wrong, so check the source.
Named in this story
Barkin, Federal Reserve, Richmond Fed, Bloomberg