by Steve Matthews and Amara Omeokwe
BNN Bloomberg
(Bloomberg) — Federal Reserve Bank of Richmond President Thomas Barkin said the US central bank needs to keep borrowing costs elevated for longer to lower inflation to its 2% target, citing higher prices in the services sector.
Barkin in a CNBC interview said US demand will need to slow a bit to get inflation to the Fed’s goal, noting goods inflation has come down significantly as supply chains have healed.
“To get to 2% sustainably in the right kind of way, I just think it’s going to take a little bit more time,” he said Thursday. “I still think there’s just a lot of movement on the services side and it’s going to take a little bit of time. I do believe we are on the right path here.”