Bloomberg: Fed’s Barkin: Now a Good Time to Pause and Observe Policy Impact

By Craig Torres
November 5, 2019

Tom BarkinFederal Reserve Bank of Richmond President Thomas Barkin says the central bank has taken out “insurance” against uncertainty facing the U.S. economy by cutting interest rates three times and “I hope we will see over the next six months the kind of impact you want to have.”

“I think it is a good time though to pause.”

Barkin talks with reporters Tuesday after speech to the Greater Baltimore Committee.

“What we’ve done would be most effective if there were fiscal support for it. When I think of fiscal support I think about it more broadly, I think about it not just as spending and taxation, but as climate for business, particularly the reduction in uncertainty.”

“We have decided to take rates down 75 basis points to protect against weakening coming from this uncertainty. So if we get either no weakening or the modest kind of weakening that we expect, then I think we have taken out the insurance that we would take.”

Note: Barkin is not a voter this year on the rate-setting FOMC

Source: Bloomberg News

The Baltimore Sun: Amid recession worries, Maryland officials look forward to end of federal sequester

Reuters: Fed’s Barkin: It’s a good time to pause interest rates

GBC’s Economic Outlook Conference 2019 Presentations