Richmond Federal Reserve president Thomas Barkin said on Tuesday that headline and core inflation is too high.

Key quotes

• Want to have positive real rates at two-year horizon.
• Supported 0.75-point June rate increase.
• Elevated inflation readings make that harder to achieve.

The US economy is slowing as consumers are buffeted by inflation and pandemic-driven demand for goods returns to more normal levels, he said earlier.

“I definitely see signs of softening,” Barkin said, with the evidence “most pronounced in lower income households” and in parts of the economy that saw demand surge during the pandemic.

Barkin also said he was still trying to determine if that is driven by underlying economic strength, or employers scarred by earlier hiring difficulties and determined to stockpile workers.