Fed’s Barkin: I’m hearing that consumers are still spending but they’re choosing

Richmond Fed President Thomas Barkin was on an episode of Odd Lots that was published earlier today. I’ve been listening to it this morning and still working my way through it.

Some headlines have hit:

• Will take a ‘test and learn’ approach to rate cuts
• Current ‘low-hiring, low-firing’ approach companies now take to employment is unlikely to persist
• Risk is that firms will resort to layoffs if economy weakens
• Disinflation has spread beyond goods to the rest of the economy, boosting confidence it will continue
• I’m hearing that consumers are still spending but they’re choosing
• I’ve talked to hotel chains where every room is booked but the second they raise prices, no one will buy
• Prices are up, people are aware of it and people are adjusting
• People are trading down

“The phrase I have been using is that ‘people aren’t hiring, but they’re not firing’ and that’s just not likely a sustainable outcome. Either demand will continue and people will start hiring again or there will be layoffs,” he said.

This article was written by Adam Button at www.forexlive.com.