From CNBC:

Federal Reserve President Thomas Barkin is confident the economy is heading for a soft landing, but challenges remain. Despite progress on inflation and economic growth, interest rate hikes are still on the table, with PCE inflation at 2.6% in November. Barkin noted four risks ahead, including geopolitical events and the possibility of higher-than-target inflation. The FOMC recently decided not to raise interest rates and penciled in three rate cuts in 2024.

Barkin compared the Fed’s job to landing a plane, with economic risks likened to unexpected turbulence or “approaching the wrong airport.” Despite recent economic progress, he noted that the potential for additional rate hikes remains on the table. His remarks come as the FOMC prepares to release minutes from its December meeting. While he didn’t indicate his position on the dot-plot matrix, Barkin’s concerns about inflation and long-term rates dropping indicate that the central bank’s job in bringing down inflation may not be over.



Read more: Fed’s Barkin sees likely soft landing ahead but notes rate hikes still a possibility