Thomas Barkins Insights on the Current State of the US Economy

Federal Reserve Bank of Richmond President Thomas Barkin has stated that the US economy is in good shape, but it is unclear whether the labor market is returning to normal hiring rates or deteriorating. The US economy has experienced two years of frothy labor markets, with the question of whether the labor market is normalizing or weakening. Barkin believes that the difference is meaningful, and the question is whether unemployment will plateau or rise from here. He also said that inflation is "normalizing," and the question is what the labor market does from here. Barkin called the low-hiring, low-firing environment abnormal and said it could strengthen if businesses start to see significant opportunities.