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Richmond Fed President: Firms Expect High Oil Prices to Be Temporary, No Clear Signs of Consumer Spending Cutbacks
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Richmond Fed President Thomas Barkin said in an interview with Reuters that corporate performance suggests businesses expect high oil prices to be temporary. There are currently no clear signs that elevated oil prices have led consumers to cut spending or altered inflation expectations in a concerning way. He said the conclusion was based on weekly credit card spending data and regular discussions with corporate executives on pricing, investment and other issues. Barkin noted that gasoline spending has clearly risen significantly, but other consumption remains fairly healthy. If the situation lasts only two to four weeks, while not ideal, it would not fundamentally change living standards. However, if it is perceived to persist over the long term, a pullback in consumption would be more likely. He added that various scenarios could prompt the Federal Reserve to move in either direction, but the case for raising interest rates would likely center on rising inflation expectations. At present, however, he has not observed a breakout shift in inflation expectations. (fc/w) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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