Fed's Barkin: Inflation expectations not at risk of breaking out – Reuters

Richmond Federal Reserve Bank President Tom Barkin told Reuters on Wednesday that he does not see inflation expectations at the risk of breaking out.

Key takeaways

"Firms, consumers, not acting as if they expect long-term effects from oil shock."

"Consumer spending still seems resilient."

"Expect slow progress on inflation, not a quick return to target."

"Goods firms feel pricing power is limited, but services firms feel they have more leeway."

Market reaction

The US Dollar Index remains under bearish pressure in the American session on Wednesday and was last seen losing 0.35% on the day at 99.50.