FOMC Voters Hint: A 25-basis-point Rate Cut in September is Possible

Richmond Fed President Barkin reportedly said in recently released comments that the "low hiring, low firing" approach to employment decisions currently taken by U.S. companies is unlikely to continue, noting that companies may lay off employees if the economy weakens.

While companies have become more conservative in filling positions, this has not yet occurred as companies remain reluctant to lay off employees.

Barkin said he is taking a "trial and error" approach to rate cuts, suggesting he may support a 25-basis-point rate cut rather than the 50-basis-point cut that some analysts believe is possible. He noted that inflation is still half a percentage point above the Fed's 2% target, and that a rate cut could ultimately fuel inflation by boosting demand for housing and other items.