Barr Suggests Multiple Rate Hikes Ahead for US Economy

Federal Reserve Governor Michael Barr hinted at further interest rate hikes in the US. He suggested that the central bank may need to raise borrowing costs again, possibly more than once.

In prepared remarks for a Federal Reserve conference in Chicago on Wednesday, Barr stated that the risks of failing to achieve the 2% inflation target have increased while labor market concerns have eased somewhat.

The US economy is growing strongly and the labor market remains resilient, but inflation still exceeds the Fed's target. Two additional rate hikes may be necessary, although Barr did not specify when they might occur.