Federal Reserve's Barkin: Financial Strain on Low- and Middle-Income Consumers Affects Inflation

ChainCatcher news, according to Jinshi reports, Federal Reserve's Barkin stated that current middle and low-income consumers are financially strained, which may suppress consumer spending and thus mitigate the inflationary impact of tariffs. He pointed out that consumers will accept price increases on certain essential goods, but will also resist price hikes by downgrading their consumption or delaying purchases. Barkin expects that future inflation will be more moderate than anticipated, as consumers are currently feeling financially constrained and must budget carefully.