Richmond Federal Reserve President Barkin emphasized that recent interest rate cuts have bolstered the job market while the Fed works to bring inflation back to its 2% target. Since fall 2024, the Fed has implemented a cumulative 1.75 percentage point rate cut, which Barkin says supports labor market health. Despite inflation being about one percentage point above target, it is expected to decrease in the coming months. Barkin noted that the unemployment rate remains historically low, and he anticipates the economy will stay resilient in 2026, aided by deregulation, tax cuts, and strong business confidence. He also highlighted that recent productivity gains will help mitigate inflationary pressures, as businesses become more resilient to higher input costs.