Economic Buzz: Fed?s Barkin says there may be a need to hike rates if price pressures become embedded

Richmond Fed President Tom Barkin has stated that there will eventually be a reckoning if US debt continues to rise, though the timing is difficult to predict. Barkin said the government can keep borrowing as long as the public keeps buying that debt. However, he warned there is a real risk investors could eventually push back, saying at some point, people stop buying debt. Barkin repeated his argument for holding interest rates steady given evidence that inflation is declining. He acknowledged Fed officials may need to hike rates if price pressures become embedded rather than continuing to ease.

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