Richmond Fed President Thomas Barkin says more interest rate increases will be needed. Barkin said he wants to see inflation running around 2% "for a period of time" The current level is far from that goal, he said. releases this week showing that consumer and wholesale price increases softened in July were "very welcome"

Consumer prices were flat in July while producer prices declined 0.5%. CPI still was up 8.5% on a year-over-year basis, and the producer price index climbed 9.8%. Both numbers are still far above the Fed's 2% long-run inflation objective.

The Fed has hiked its benchmark borrowing rate 0.75 percentage point at each of its last two meetings. Markets are divided over whether the Fed will increase by three-quarters of a point in September or scale down to half a point. Whichever is the case, Barkin said acting aggressively now is important.

Congressman says his constituents are deeply concerned about inflation and want action from the Fed. "Consumers really dislike inflation, and one message that I get loud and clear as I wander around my district is, 'we don't like inflation,'" he said. He said his constituents want the Fed to do more to fight inflation.
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