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Federal Reserve Watch for Jan. 6: Barkin Says Future Policy Changes Will Be 'Delicate Balance' Between Inflation, Employment Goals

BY MT Newswires | ECONOMIC | 01/06/26 02:31 PM EST

02:31 PM EST, 01/06/2026 (MT Newswires) -- Richmond Fed President Tom Barkin (nonvoter) said that both sides of the Fed's dual mandate will require attention, saying that it is a "delicate balance" between above-target inflation and below target hiring that requires "finely tuned judgements."

Fed Governor Stephen Miran (voter until Jan. 31) said in an interview with Fox Business that he believes that 100 basis points of reduction could be appropriate this year due to what he views as significant restrictiveness in monetary policy.

Recent comments of note:

(Jan. 5) Minneapolis Fed President Neel Kashkari (voter) said in an interview with CNBC that the current level of the federal funds rate is close to neutral, adding that inflation continues to slow, though it remains too high, and that the risks of weaker employment growth have increased.

(Jan. 4) Philadelphia Fed President Anna Paulson (voter) said that the FOMC could delay the next rate reduction until later in the year so that it can observe the effects of the easing that has already been put in place.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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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.

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