The Federal Reserve's Powell warns that inflation remains elevated, but signs of moderating inflation have been observed.

Tom Barkin, President of the Richmond Federal Reserve Bank, said that current inflation levels are too high, but he has seen preliminary signs that price pressures may soon ease. Barkin stated that the personal consumption expenditures price index rose year-on-year as of May; if the federal funds rate and labor market cannot continue to effectively curb inflation, it will be difficult to bring inflation back to the target level of 2%. Barkin expressed concerns about the pricing behavior of businesses in the current high inflation environment. He pointed out that businesses may take current inflation levels into account when setting prices, which could lead to sticky inflation rates remaining high.