On October 30, Richmond Fed President Thomas Barkin said that with low unemployment, solid economic demand, and inflation still elevated, gradual rate hikes are reasonable. Regarding the Fed's monetary policy tightening process, he said: "The direction of policy is fairly clear; the question is the pace of progress." Barkin believes that the Fed's September meeting had already signaled gradual action. "When policy is not clearly behind the curve, and policymakers want time to gather more information from the economic environment and external environment, a gradual approach is reasonable," he said. He pointed out that consumer spending has not noticeably contracted; the job market is in a state of low hiring and low layoffs, but workers still retain their jobs, and consumer spending has been quite creative. He also said that as the AI buildout drives a surge in investment, policymakers may need to take measures to curb this momentum. "This kind of demand-side inflation is not a supply shortage problem, unlike the situation where the Iran war led to higher energy prices. We will watch how long this pressure lasts. But if demand continues to surge, this may be a situation that requires measures to curb it."