Federal Reserve Bank of Richmond President Tom Barkin said he believes the central bank’s current level of interest rates remains restrictive enough to lower inflation in 2025.

Federal Reserve Bank of Richmond President Tom Barkin judged that interest rates remain sufficiently restrictive to further lower inflation in 2025, he said on Friday. “Inflation is not yet back to target,

The Federal Reserve cut interest rates by 0.25% on December 18 but an interest rate cut is unlikely when the Fed issues its next policy decision on January 29.

The Fed announced its third straight rate cut this week, also signaling that additional reductions are likely in 2025. What could this mean for future mortgage rates?

Jerome Powell, the Fed chair, said that the central bank cut rates after each of its last three meetings because inflation had significantly slowed, but that it was a “closer call” this time. He added that he expects the Fed to cut interest rates more slowly next year, because inflation appears to be lingering.

The U.S. central bank's benchmark policy rate should stay restrictive until it is more certain that inflation is returning to its 2% target, Richmond Federal Reserve President Thomas Barkin said on Friday.