According to BlockBeats, on August 26, Richmond Fed President Barkin said that the "low hiring, low firing" employment decision-making approach currently adopted by American companies is unlikely to continue. If the economy weakens, companies may lay off employees.
While companies have become more conservative in filling positions, this has not happened yet as companies remain reluctant to lay off employees.
Barkin said he was taking a "trial and error" approach to rate cuts and would likely support a 25 basis point cut, rather than the 50 basis points some analysts have considered. He noted that inflation remains half a percentage point above the Fed's 2% target and that a rate cut could ultimately help boost inflation by boosting demand for housing and other goods.
