A top Federal Reserve official has warned about the threat of resurgent US inflation after Donald Trump takes power, even as he forecast solid growth for the world’s largest economy overall.
Richmond Fed president Tom Barkin said Americans were still spending freely, job losses remained low and US consumers were starting to push back against higher prices.
But while this combination could deliver “more upside than downside in terms of growth” in 2025, Barkin said he also expected “more risk on the inflation side”.
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