Barkin: Would keep rates restrictive for longer given inflation risks

BALTIMORE, Jan 3 (Reuters) - The Fed's benchmark policy rate should stay restrictive until it is more certain that inflation is returning to the central bank's 2% target, Richmond Federal Reserve bank president Tom Barkin said Friday.

"I think there is more upside risk than downside risk" to inflation given the economy's continued strength and the possibility of renewed wage and other price pressures, Barkin said. "I put myself in the camp of wanting to stay restrictive for longer as opposed to the other school, which would be we're done so why not take rates down to neutral."

(Reporting by Howard Schneider)

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