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Richmond Federal Reserve President Thomas Barkin said on Thursday that he is not worried about the possibility of inflation escalating in the near future, as reported by Reuters.

Additional takeaways

“Inflation is not that far off 2% target.”

“Inflation expectations are stable and well-anchored.”

“Having rates lower for longer does not mean zero forever.”

“Fed has the freedom to act if financial stability risks arise.”

“Hopefully, Fed can move toward normalization when the time is right.”

Market reaction

The US Dollar Index largely ignored these comments and was last seen flat on the day at 94.35.