Small font size A Larger text size A Largest text size A

Fed's Barkin says US is vulnerable to inflation shocks, FT reports

BY Reuters | ECONOMIC | 11/21/24 05:16 AM EST

(Reuters) - The U.S. is more vulnerable to inflationary shocks than in the past, Federal Reserve Bank of Richmond President Tom Barkin said in an interview with the Financial Times published on Thursday.?

Barkin said he expected inflation to continue dropping across the U.S, while cautioning that businesses were passing on costs to consumers more readily than in the past.?

"We're somewhat more vulnerable to cost shocks on the inflation side, whether they be wage-[related] or otherwise, than we might have been five years ago," Barkin told the FT.?

(This story has been refiled to fix the day reference in paragraph 1)

(Reporting by Gursimran Kaur in Bengaluru; Editing by Bernadette Baum)

More Fixed Income News

Cyprus says Moody's A3 upgrade vote of confidence in economy BY Reuters |CORPORATE 02:31 AM EST
Cambodia's flagship canal in hot water as China funding dries up BY Reuters |ECONOMIC 11/22/24 11:06 PM EST
AM Best Upgrades Credit Ratings of Investors Life Insurance Company of North America BY Business Wire |CORPORATE 11/22/24 06:22 PM EST
Form 424B2 ROYAL BANK OF CANADA BY EDGAR SEC Filings |ECONOMIC 11/22/24 05:17 PM EST

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article