Fed's Barkin: Fed has the ability to respond to economic changes

Odaily Planet Daily Report: Federal Reserve Chair Barr stated that the economic conditions are good, which allows the Federal Reserve to lower borrowing costs. "Strong but more discerning consumers, coupled with a more productive and higher-value workforce, have made the economic situation very favorable." Barr said in a speech prepared for the Baltimore Joint Summit on Tuesday. "Regardless of how the economy develops, the Federal Reserve has the ability to respond appropriately," he said, noting that interest rates have moved away from their peak but are still higher than historical lows. Barr said he is considering two scenarios for the economy: as the uncertainty of the election subsides, businesses may begin to reinvest and hire again, allowing the Federal Reserve to focus on the upside risks to inflation. Alternatively, businesses may resort to layoffs to cope with the profit margin pressure caused by weakening pricing power, which will increase the employment risks facing the Federal Reserve. (Gold Ten)