Thomas Barkin, president of the Federal Reserve Bank of Richmond, has reaffirmed the Fed’s commitment to bringing inflation back to its 2% target. Inflation has exceeded that target for more than five years, with the latest PCE reading coming in at 3.5% year-over-year as of March 2026, jumping from around 2.7% in late 2025. Barkin described the current monetary policy stance as a close call, suggesting that additional tightening may be warranted to address persistent price pressures. The Richmond Fed president warned that the prolonged above-target inflation environment risks unanchoring long-term inflation expectations, posing a threat to the central bank’s credibility.
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