Federal Reserve Bank of Richmond President Thomas Barkin said the U.S. central bank will “persist” in its efforts to bring high inflation under control.
“Inflation should come down. But don’t expect its drop to be immediate or predictable,” he said during an event Monday hosted by his bank. “Our rate and balance sheet moves take time to bring inflation down, but the Fed will persist until they do. One of the key lessons from the 70s was not to declare victory prematurely.”
The Fed raised rates by 75 basis points last week for the fourth straight time, lifting the target range for its benchmark rate to 3.75% to 4% as it battles the highest inflation in 40 years.
Data from the Labor Department due on Thursday is expected to show U.S. consumer prices rose 7.9% in the 12 months through October, according to economists polled by Bloomberg.
“We have the tools to bring inflation down, no matter what disruptions occur,” said Barkin, who does not vote on monetary policy this year.