Federal Reserve member Barkin: I expect the next reading of the Consumer Price Index to show a slowdown in inflation.

During his talk on Tuesday, Federal Reserve Bank of Richmond member Thomas Barkin discussed inflation data and its impact on monetary policy for the Federal Open Market Committee. Barkin's key comments today were:

• Economic uncertainty calls for caution in monetary policy moves during the latter stages of the fight against inflation.
• Federal Reserve monetary policy should remain modestly restrictive until there is more confidence in the return of inflation to the target level.
• I expect the upcoming Consumer Price Index to show further declines in price inflation.
• The Federal Reserve has underestimated the extent of progress made in reducing inflation rates.
• The U.S. economy is in good shape despite the tight monetary policy.
• The Federal Reserve will adopt a wait-and-see approach regarding the impact of upcoming monetary policy changes on the economy.