Fed's Barkin: Lack of fiscal space is a risk for future recessions

Federal Reserve (Fed) Bank of Richmond President Tom Barkin noted on Thursday that even though consumer debt ratios are in an overall better place than they were in years past, the Fed is facing some key difficulties looking forward to future downturns unless space on the central bank's books opens up.

Key highlights

The consumer debt burden is still well below 2018-2019.

The lack of fiscal space is a risk for future recessions.

I think the term premium is moving long rates, not inflation.