The U.S. central bank's half-percentage-point interest rate cut last month was an acknowledgement that its policy rate was "out of sync" with where the economy stands, but shouldn't be taken as a sign that the battle with inflation is finished,

Barkin expressed caution about inflation, noting that the core personal consumption expenditures price index, which strips out food and energy costs, is still above the Fed's 2% target at 2.7%. He doesn't expect that rate to fall much further until 2025.