Fed’s Barkin Says ‘Modest’ Amount of Tariffs Going to Consumers
Federal Reserve Bank of Richmond President Tom Barkin said that a “modest amount” of tariff increases are passing through to consumers, though it does take time for the levies to appear in price levels.
“You’re seeing some of it being borne by the exporter. You’re seeing some of it being borne by the company, and you’re some of it being passed on to consumers,” Barkin says in an online discussion hosted by Maryland’s Howard County Chamber of Commerce Monday
In the overall data “it’s a modest amount going into the pockets of consumers”
With regard to government policies, “the fog is starting to lift,” Barkin says. “A lot of these policy uncertainties are being cleaned up” and the changes “do seem a little clearer”
For businesses, “we’re starting to see people lift their heads up again” and that should be good for investment and hiring plans, he says
As for the job market, “What we are seeing overall in wage pressure is it’s steadily coming down, not quite to its pre-Covid levels, but modestly down,” Barkin says. “The reason it’s not causing a lot of margin pressure on companies is that productivity has gone up at the same time”
Barkin also says labor force growth this year may be flat, perhaps 0.2%
Source : Bloomberg.com
