Fed’s Barkin Sees Economy Stable, Lack of Confidence Worrisome

Federal Reserve Bank of Richmond President Tom Barkin said the US economy remained in good shape, but that trouble loomed in the outlook for business investment and consumer spending.

Companies “are not — for the most part— firing people, but they are defensive, and that includes things like hiring freezes or postponing investments or delaying, deferring,” Barkin said Tuesday at the Big Dipper Innovation Summit in Richmond, Virginia.

Richmond Fed President Tom Barkin .

Photographer: Valerie Plesch/Bloomberg

Growing uncertainty driven by President Donald Trump’s trade war has caused a sharp drop in business and consumer confidence.

“I think there’s lots of reasons to be worried about consumer spending,” ...