Richmond Fed president says economy remains resilient despite inflation concerns

Tom Barkin, president of the Federal Reserve Bank of Richmond, said this week that the US economy is holding up better than expected. He described it as "remarkably resilient." Business investment has grown at 9.5% a year in the first half of 2026, well above the pre-pandemic average of 5.8%. Consumer spending makes up nearly 70% of the economy, so it plays a big role in growth. Barkin said it is "a close call" whether interest rates are currently high enough to reduce inflation. He did not vote on policy this year, and he was unsure whether he would have supported a rate increase. He also noted that uncertainty in markets has started to fall, and that shoppers hunting for bargains may be helping to keep prices down.