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Central BanksMediumUpdated×3•Originally published 5 November 2026•Updated 7 November 2026•
1 min read

Fed's Barkin Supports Gradual Rate Hikes as Policy Nears Neutral

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Key Facts

1Thomas Barkin stated that policy is around neutral and a gradual pace of rate hikes 'makes sense'.
2Barkin noted that cost pressures from tariffs are broad-based and firms feel compelled to pass them along to consumers.

Richmond Fed President Thomas Barkin stated that monetary policy is approaching a neutral level and that a gradual pace of interest rate hikes 'makes sense'. InvestingLive reported that Barkin signaled this measured approach because while inflation is not necessarily accelerating, it is also not falling.

Barkin noted that cost pressures from broad-based tariffs are compelling firms to pass price increases along to consumers. This assessment follows economic data released on November 5, 2026, which showed US Initial Jobless Claims fell to 189,000 from the previous week's 195,000.

The market is looking toward the release of US Nonfarm Payrolls and the Unemployment Rate scheduled for November 6, 2026, which will provide further clarity on labor market conditions.

Latest Updates · 1

  1. Notable·

    Update: Cleveland Fed President Beth Hammack joined this stance on November 6, 2026, expressing support for a gradual path of interest rate hikes. Hammack emphasized that this measured approach is necessary to ensure inflation returns sustainably to the central bank's 2% target.