Fed's Barkin: There's more to come to get rates into restrictive territory

Richmond Fed President Thomas Barkin said on Friday that there is more to come to get rates into the restrictive territory and noted that he would like to see PCE inflation running at target for some time, as reported by Reuters.

Additional takeaways

"Economy weathering rate hikes well."

"Economy is fundamentally sound."

"Inflation is being driven by commodity prices, supply chain issues, demand."

"Raising rates would not be inconsistent with a tight labor market."

"On financial conditions, I look at real rates, I want them to be positive."

"We are on brink of moving real rates to positive territory."

"We need to sustain them there and follow through with expectations on rate hikes."

"Demand is definitely softening."

"Demand for higher-end services is still robust."

Market reaction

The dollar continues to outperform its rivals after these comments and the US Dollar Index was last seen rising 0.55% on the day at 105.65.