Richmond Federal Reserve President Thomas Barkin is observing a growing divergence between business-to-business and business-to-consumer pricing power. In the B2B sector, companies can relatively easily pass on price increases, while consumer-facing companies are facing growing resistance from consumers exhausted by years of elevated inflation. This dynamic, based on feedback collected from businesses in the district covering Virginia, Maryland, the Carolinas, most of West Virginia, and the District of Columbia, could influence the Federal Reserve’s monetary policy.
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