Barr Puts Rate Hike on Table if Inflation Stalls

Federal Reserve Governor Michael Barr said he would support an interest rate hike at the September 15-16 Federal Open Market Committee (FOMC) meeting if incoming inflation data don't show sufficient progress toward the central bank's 2% target.

Barr, a permanent voting committee member, made this statement at the Second-Chance Lending Forum in Washington, D.C. He noted that 'inflation remains too high, and has been for over five years.'

If inflation appears to be moderating sufficiently, Barr believes the Fed can take more time to assess its policy stance.

The most recent consumer price index stood at 3.7% annually, with core non-housing services inflation persistently elevated, a metric Fed officials monitor as a proxy for underlying demand pressure.