Bloomberg Talks Fed's Tom Barkin Talks Path for Economy, Tariff Uncertainty
May 27, 2025
Tom Barkin, President and CEO of the Federal Reserve Bank of Richmond, shares his insights on the current state of the US economy. He discusses how tariff uncertainties are causing businesses to adopt cautious investment and hiring strategies. The conversation also highlights the ripple effects of government spending cuts, revealing disparities in consumer sentiment and economic realities. Barkin explores recent GDP declines linked to tariff changes and the adaptive strategies businesses employ amidst shifting consumer behaviors.
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Fog of Tariffs Creates Business Hesitancy
- Tariff impacts are uncertain as companies delayed price pass-through and customers may reject price hikes.
- Businesses feel like "driving through fog," hesitant to accelerate investment or hiring amid policy uncertainty.
Traveling Through Richmond Fed District
- Matt Miller recounts driving through Fredericksburg to D.C., areas within Richmond Fed's district.
- Tom Barkin humorously notes the difficulty of traveling that stretch frequently.
Government Cuts Hit DC Metro Area Hard
- Government spending cuts hurt the DC metro economy with notable job losses, retail declines, and reduced real estate activity.
- Job postings dropped about a third, reflecting tangible fiscal policy impacts locally.