Richmond Fed President Thomas Barkin isn’t mincing words about where the central bank stands on inflation. The Federal Reserve will tighten policy if that’s what it takes to drag inflation back down to 2%, a target that has looked more like a suggestion than a ceiling for the better part of half a decade.
Barkin’s latest remarks underscore a growing tension inside the Fed. Inflation has spent more than five years above the 2% target, and the most recent headline PCE reading clocked in at 3.5% year-over-year as of March 2026.
The ‘close call’ that could tip toward tighter policy
In a July 2026 interview with the Wall Street Journal, Barkin described the current monetary policy stance as “a close call.” He’s not convinced interest rates are high enough to finish the job on inflation, and he specifically highlighted the case for additional tightening to address persistent price pressures.
Inflation readings hovered around 2.7% in late 2025 and early 2026, then the March 2026 PCE print jumped to 3.5%, erasing months of slow-grinding improvement in a single report.
