Fed’s Barkin sees rates near neutral, offers no December signal

Richmond Federal Reserve President Tom Barkin conveyed that government debt, rather than consumer debt, has reached unprecedented levels. During a speech at the Greater Greer Chamber of Commerce in South Carolina, he expressed uncertainty regarding interest rates for the upcoming December meeting, stating there is "no base case."

The current policy rate, according to Barkin, appears to be close to or just below the neutral point. Although the most recent job report was positive, he noted that the environment still favors low hiring and firing. The impact of recent elections on the economy remains unclear. Barkin suggested that having two full months of economic data at each Federal Reserve policy meeting could be advantageous.

He believes recent ballot measures will not hinder data center expansion, and firms will find suitable locations to build.