Federal Reserve Bank of Richmond Governor Barkin warned that the inflationary shock may take time to subside, and there is a risk that the high pressure will solidify. In a speech prepared for an event in Baltimore on Tuesday, Barkin detailed his latest outlook on economic and monetary policy. He said that the Federal Reserve's rate hike last week would help slow inflation, but he did not hint whether further policy tightening is needed. Instead, the Federal Reserve official made it clear that supply shocks are no longer one-off or temporary, but are causing continued price pressure across the economy. “These shocks may subside over time, but I do expect this to take time,” Barkin said. “During this period, there is a risk that the current high level of inflation will affect future inflation.”

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