WASHINGTON, D.C. — Tom Barkin, president and CEO of the Federal Reserve Bank of Richmond, stated that inflation numbers remain too high during an interview on June 28, 2026. Barkin cited persistent business pricing behavior, rising input costs, and investment in artificial intelligence infrastructure as factors contributing to inflation.

Barkin's remarks occurred during an interview on the sidelines of the Aspen Ideas Festival in Aspen, Colorado. His comments followed a report released on June 25, 2026, which indicated that the personal consumption expenditures index, the Federal Reserve's preferred inflation metric, rose 4.1% in the year through May 2026. This increase marked the highest level since April 2023.

During the interview, Barkin explained that businesses incorporate current inflation into their pricing decisions. "Businesses, when they set prices, take today's inflation as a factor, and so I think there's some persistence to inflation," he stated. He also mentioned that companies are currently experiencing higher input costs.

"It's hard to have confidence that you're headed back to 2% without any more influence from the fed funds rate or the labor market or some other feature that creates disinflation the other way," Barkin said. He added, "I do worry about that, and that's part of why I think being modestly restrictive is a reasonable place to be."

In June 2026, Federal Reserve officials maintained the benchmark federal funds rate at its existing level. Barkin previously delivered a speech in Washington, D.C., on April 11, 2024. Company leaders in western Virginia informed Barkin that they had not yet decided on the extent of employee compensation increases for 2027.