BARKIN SAYS THE LAST JOB REPORT WAS HEALTHY BUT HE STILL SEES FIRMS IN A LOW-HIRE, LOW-FIRE ENVIRONMENT, AND THAT HE DOES NOT THINK BALLOT MEASURES APPROVED IN RECENT ELECTIONS WILL IMPEDE DATA CENTER EXPANSION, AS FIRMS WILL FIND SOMEWHERE TO BUILD
*BARKIN SAYS INFLATION IS FED'S MOST IMPORTANT RISK NOW
*BARKIN DOES NOT EXPECT INFLATION TO ACCELERATE OR FALL
*BARKIN SAYS MONETARY POLICY CURRENTLY AROUND NEUTRAL
*BARKIN SAYS GRADUAL POLICY APPROACH 'MAKES SENSE'
*BARKIN SAYS POLICY PATH CLEAR; QUESTION IS PACE
BARKIN SAYS BUSINESS OWNERS SAY DEMAND REMAINS SOLID, WITH ONLY WEAKNESS AMONG NON-PROFITS AND IN THE HOUSING SECTOR; BUSINESSES SAY THAT COST PRESSURES ARE BROAD BASED; BUSINESSES ARE LAYING PLANS TO PASS THOSE COSTS ON TO THEIR CUSTOMERS
BARKIN SAYS THE AI INVESTMENT SURGE HAS PRESSURED SUPPLY CHAINS, AND THAT IS INFLATIONARY; AI INVESTMENT IS LEADING TO DEMAND SIDE INFLATION, WHICH IS THE KIND OF THING THE FED CAN LEAN AGAINST
BARKIN SAYS IN THE CONTEXT OF YEARS OF ELEVATED INFLATION IT IS EASIER FOR BUSINESSES TO ARGUE THEY NEED TO RAISE PRICES; RESILIENCE OF CONSUMER SPENDING HAS BEEN A SURPRISE GIVEN RELATIVELY FLAT INCOMES