A Fed official saying the economy needs cooling is a sign that growth is running hot — good news for workers and company profits, bad news for anyone hoping for rate cuts soon.

• Richmond Fed president Tom Barkin said the Fed needs to cool demand.
• Central bankers only talk that way when spending and the economy are booming.
• A hot economy means the Fed has little reason to cut interest rates.
• Strong demand also keeps the pressure on inflation.

Outlook: Expect the Fed to stay cautious on rate cuts while demand stays this strong.