Richmond Fed President Barkin: Economy healthy, inflation the biggest risk

Richmond Fed President Tom Barkin said the U.S. economy remains healthy with resilient demand but shows no clear signal of declining inflation, which he identified as the biggest risk to the outlook. He described the current policy rate as close to neutral, suggesting limited room for further easing without reigniting price pressures. The comments matter because they push back on market expectations for near-term rate cuts and reinforce the Fed's data-dependent stance. Investors will watch upcoming inflation and demand data, along with other Fed officials' remarks, for confirmation of whether rates stay on hold longer than priced.