The Federal Reserve (Fed) has paused its cycle of interest rate cuts after reducing rates for three consecutive months. However, Richmond Fed President Thomas Barkin has stated that the Fed is still inclined to cut interest rates further this year. Barkin believes that the current policy rate is moderately restrictive and that more time is needed to understand the direction of the US economy and inflation, especially in light of the uncertainty surrounding President Donald Trump's policies. He predicts that consumer spending will increase and investments will decrease, and expects inflation figures to decline. Barkin supports further interest rate cuts, as long as the economy does not overheat. He believes that the Fed has adjusted its rates to a more appropriate level based on the current state of the economy.



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