Richmond Fed President supports gradual approach

Referring to the Fed's tightening of monetary policy process, Barkin said in an interview on SiriusXM radio, "The path to follow is quite clear, but the real question is the speed of this process. Following a gradual approach is the right path, and we will see what lessons we will learn in the coming period."

Barkin spoke two days after the Fed's decision to keep interest rates steady. In its statement, the Fed stated that "gathering more information" would help the decision-making committee determine its next steps. At the press conference following the decision, Chairman Kevin Warsh said financial conditions were tighter than in September, but he "avoided" describing them as "tight."

Barkin stated that the central bank signaled a gradual approach at its September meeting. “A gradual approach makes sense where you need time to learn from the economic environment and the external environment, where you're not too far behind the curve,” Barkin said.