{"id":1670041,"date":"2022-10-03T12:05:12","date_gmt":"2022-10-03T16:05:12","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1670041"},"modified":"2022-10-03T12:06:38","modified_gmt":"2022-10-03T16:06:38","slug":"permanent-shifts-in-inflation-could-mean-more-volatile-policy-feds-barkin","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/permanent-shifts-in-inflation-could-mean-more-volatile-policy-feds-barkin\/","title":{"rendered":"Permanent shifts in inflation could mean more volatile policy \u2013 Fed\u2019s Barkin"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fpermanent-shifts-in-inflation-could-mean-more-volatile-policy-feds-barkin%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1670041&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Howard Schneider<\/p>\n<p>ATLANTA (Reuters) \u2013     Changes in global supply chains, demographic shifts, and fractured trade relationships may make inflation in the future more volatile, and force the Federal Reserve and other central banks to respond in kind, Richmond Federal Reserve President Thomas Barkin said on Monday.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\">\n<\/div>\n<p>It is not yet clear, Barkin said at an Atlanta Fed technology conference, whether some of the changes in the global economy that began during the coronavirus pandemic, such as businesses shifting to more expensive but more resilient sources of supply, will prove permanent.<\/p>\n<p>But if they do, \u201cwe would be more likely to face periods with real forces imparting near-term inflationary pressures,\u201d than was the case in recent decades, Barkin said. \u201cThese pressures could make \u2018looking through\u2019 short-term shocks more difficult. They could make gradual rate increase paths less effective. They could make market functioning interventions somewhat trickier.\u201d<\/p>\n<p>For central banks \u201cour efforts to stabilize inflation expectations could require periods where we tighten monetary policy more than has been our recent pattern,\u201d Barkin said.<\/p>\n<p>The prospect of central banks forced into perpetually more aggressive policy would be a sea change for global markets. The Fed\u2019s target policy rate, for example, was held near zero for much of the last 15 years, and in the Fed\u2019s last tightening cycle never topped 2.5%.<\/p>\n<p>It is now over 3% and perhaps heading to more than 4.5% by early next year.<\/p>\n<p>If the forces that helped anchor inflation in recent years have been diminished by the pandemic, then high rates, and faster central bank tightening cycles may become the norm.<\/p>\n<p>\u201cI don\u2019t want to declare a long-term shift in the prevailing winds when we still don\u2019t know exactly how the pandemic era will play out\u2026Never count disinflationary forces out,\u201d Barkin said. <\/p>\n<p>Yet in the alternative the Fed may face a challenge not just in setting policy, but in explaining it.<\/p>\n<p>\u201cOver the last 10 years, our inflation and employment goals have not been in conflict while making policy. As such, the Fed\u2019s decisions have been relatively easy to explain,\u201d Barkin said. If that changes \u201cwe will need to be crystal clear that a growing economy and maximum employment require stable prices and that we will remain committed to addressing inflationary gusts.\u201d<\/p>\n<p> (Reporting by Howard Schneider; Editing by Andrea Ricci)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/permanent-shifts-in-inflation\/attachment\/file-photo-federal-reserve-bank-of-richmond-president-thomas-barkin-3\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/tagreuters.com2022binary_LYNXMPEI920RA-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI920RA-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Howard Schneider ATLANTA (Reuters) \u2013 Changes in global supply chains, demographic shifts, and fractured trade relationships may make inflation in the future more volatile, and force the Federal Reserve<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1670041","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1670041","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1670041"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1670041\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1670041"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1670041"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1670041"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}