Fed's Barkin expects core inflation to head lower early next year

Richmond Federal Reserve Bank President Thomas Barkin said on Friday that he always expected underlying inflation to remain sticky for the balance of 2024, but said he expects it to head downward again in the first quarter, based on trends in the data and what his business contacts tell him is a lack of pricing power.

"I'm not hearing the kind of inflation we've seen in the past. And that gives me hope that as we get through the first quarter, those numbers will come down," Barkin told Yahoo Finance. He was referring to the core personal consumption expenditure price index, which the Fed watches to gauge where inflation is headed and which in recent months has been stuck above 2.5%.