President and CEO of Federal Reserve Bank of Richmond discusses inflation during visit to Greenville

JENNIFER REDDY IS LIVE IN THE STUDIO. HE SPOKE ABOUT THIS IN THE UPSTATE TODAY? ANY FRED: NEEDED. HIS DISTRICT INCLUDES SEVERAL AREAS OF THE EAST COAST, INCLUDING THE CAROLINAS. HE SAYS INFLATION WILL COME DOWN, BUT ITS NOT GOING TO HAPPEN RIGHT AWAY. IN A ROOM FULL OF BUSINESS OWNERS AND LEADERS TOM BARKIN , FOCUSED ON INFLATION DURING A LUNCHEON AT FLUOR FIELD. >> THERE’S STILL A VERY STRONG ECONOMY WHEN IT COMES TO THE QUESTION OF DEMAND. WE STILL HAVE A LOT OF SAVINGS ON THE ECONOMY, INCOMES ARE RISING. THE ISSUE WE’VE GOT RIGHT NOW IS INFLATION. REPORTER: BARKIN IS THE PRESIDENT AND CEO OF THE FEDERAL RESERVE BANK OF RICHMOND. HE SAYS THE IMPACT OF COVID-19 IS ONE OF THE REASONS AMERICANS ARE SEEING HIGHER PRICES FOR THINGS LIKE GROCERIES. >> I THINK EVERYBODY HATES INFLATION. AND THE REASON THEY HATE INFLATION IS THAT IT’S EXHAUSTING. REPORTER: AND THE EXHAUSTION IS NOT GOING AWAY OVERNIGHT. BARKIN SAYS IT’S GOING TO TAKE TIME FOR INFLATION TO COME DOWN. >>>> WE WILL START SEEING IT COME DOWN I THINK IN THREE DIFFERENT WAYS, PART IS WHAT I HAVE TALKED ABOUT, WHICH IS, AS WE RESTRAIN DEMAND, YOU’LL SEE DEMAND AFFECT PRICES LESS. BUT I THINK YOU’RE ALSO STARTING TO SEE SUPPLY CHAINS START TO HEAL, FREIGHT PRICES ARE COMING DOWN, FOR EXAMPLE, AND COMMODITY PRICES WILL START TO COME DOWN AND YOU’VE SEEN THAT AT THE GAS PUMP OVER THE LAST MONTH. REPORTER: IN THE UPSTATE, BARKIN SAYS GREENVILLE’S ECONOMY IS DOING BETTER THAN OTHER CITIES IN HIS DISTRICT BECAUSE IT IS , ATTRACTING PEOPLE AND BUSINESSES TO THE AREA. CARLOS PHILLIPS WITH THE GREENVILLE CHAMBER SAYS BUSINESSES ARE NAVIGATING INFLATION WITH RESILIENCY. >> WE EFFECTIVELY NAVIGATED THE PANDEMIC AND FOR THE MOST PART , WE HAVE COME OUT STRONGER THAN WHEN WE ENTERED. AND I THINK WE WILL SEE THE SAME FROM OUR BUSINESSES WITH THIS INFLATIONARY PERIOD THAT WE’RE GOING THROUGH AS WELL. REPORTER: WE ALSO ASKED BARKIN ABOUT THE POSSIBILITY OF A RECESSION AND HE DIDN’T COMPLETELY RULE

Advertisement

President and CEO of Federal Reserve Bank of Richmond discusses inflation during visit to Greenville

Tom Barkin spoke during a luncheon at Fluor Field

The president and CEO of the Federal Reserve Bank of Richmond, Tom Barkin, made a visit to Greenville on Monday. Barkin spoke about inflation at a luncheon with business and organization leaders at Fluor Field. “I think everybody hates inflation and the reason they hate inflation is that it’s exhausting,” said Barkin. “You’ve got suppliers coming to you with price increases, and when you try to pass prices onto customers, customers don’t like it. It feels unfair and it feels unfair because you may feel like you’ve worked hard to get your wages up but now you’ve go to pay more at the gas pump. So, it affects everybody and I think one thing we’ve seen or relearned in this pandemic is people want inflation behind us.”According to Barkin, the impact of COVID-19 is one of the reasons why we are seeing inflation. He said it’s going to take time for it to come down. “We’ll start seeing it come down I think in three different ways,” said Barkin. “Part is what I talked about, which is as we restrain demand you’ll see demand affect prices less. But I think you’re also starting to see supply chains start to heal, freight prices are coming down for example and commodity prices will start to come down and you’ve seen that at the gas pump over the last month.”

The president and CEO of the Federal Reserve Bank of Richmond, Tom Barkin, made a visit to Greenville on Monday.

Barkin spoke about inflation at a luncheon with business and organization leaders at Fluor Field.

Advertisement

“I think everybody hates inflation and the reason they hate inflation is that it’s exhausting,” said Barkin. “You’ve got suppliers coming to you with price increases, and when you try to pass prices onto customers, customers don’t like it. It feels unfair and it feels unfair because you may feel like you’ve worked hard to get your wages up but now you’ve go to pay more at the gas pump. So, it affects everybody and I think one thing we’ve seen or relearned in this pandemic is people want inflation behind us.”

According to Barkin, the impact of COVID-19 is one of the reasons why we are seeing inflation. He said it’s going to take time for it to come down.

“We’ll start seeing it come down I think in three different ways,” said Barkin. “Part is what I talked about, which is as we restrain demand you’ll see demand affect prices less. But I think you’re also starting to see supply chains start to heal, freight prices are coming down for example and commodity prices will start to come down and you’ve seen that at the gas pump over the last month.”

Leave a Reply

Your email address will not be published. Required fields are marked *