The Fiscal Outlook and Housing Affordability with Richmond Fed Tom Barkin

The Federal Reserve’s approach to monetary policy and the current state of the U.S. economy take center stage in this discussion with Richmond Fed President Tom Barkin. Following the Jackson Hole Economic Policy Symposium, the conversation examines the Fed Chair’s recent speech, emphasizing a shift away from rigid forward guidance and mechanical reaction functions in favor of more flexible, debate-driven policy making. While the labor market remains solid with historically low layoff rates, inflation persists above target, necessitating continued vigilance. Beyond macroeconomic policy, the dialogue pivots to housing affordability, identifying supply-side constraints—such as restrictive land-use regulations and permitting hurdles—as the primary drivers of high costs. Rather than relying on demand-side interventions like low mortgage rates, the focus shifts toward creative land utilization and increased construction to expand housing availability for more Americans.