(Yahoo!Finance) - Richmond Fed President Tom Barkin once again urged caution about the direction of interest rates in a new speech Wednesday, reiterating that the potential for hikes is still on the table if inflation heats back up.
"A soft landing is increasingly conceivable but in no way inevitable," Barkin said in his speech in Raleigh, N.C.
He outlined a number of risks that could disrupt that soft landing, a term that refers to a scenario where inflation drops and the US economy slows without triggering a recession.
One such risk is that a recent drop in long-term rates could stimulate demand in interest-sensitive sectors like housing, which could push inflation higher again. The shelter and services components of inflation remain high, he noted.
"That’s why the potential for additional rate hikes remains on the table," added Barkin, who this year is a voting member of the Fed's interest rate setting committee.
By Jennifer Schonberger · Senior Reporter
