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Barkin says easing inflation expectations could cool price pressures

Richmond Fed President Tom Barkin said that tempering business inflation expectations—amid rate hikes and the prospect of more—can cool price pressures during budget negotiations.

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Federal Reserve rate hikes and the prospect of further increases could curb business inflation expectations and help ease price pressures as firms negotiate budgets for the coming year, Richmond Fed President Tom Barkin said on Tuesday. Barkin said that could offer a way to reduce inflation without necessarily slowing the economy.