Fed's Barkin: Some businesses still saying they need to raise prices

Thomas Barkin, president of the Federal Reserve Bank of Richmond, said on Thursday that the US labor market remains tight and added noted that some business are still saying that they need to raise prices, per Reuters.

Additional takeaways

"Demand is definitely cooling, in part because it was overstimulated during the pandemic."

"Fed rate hikes are also helping reduce demand, as is credit tightening due to bank failures."

"Data on productivity has been moving the wrong way but much is unknown about COVID impacts on hiring, labor force."

"Fed is in a test and learn situation to determine how slowing demand lowers inflation."

Market reaction

The US Dollar Index clings to modest daily gains above 104.00 after these comments.