Barr Warns on Inflation: Rates May Rise If Prices Don't Cool

Federal Reserve Governor Michael Barr emphasized the importance of inflation control in setting monetary policy. At an event in Washington, he stated that if inflation data does not show a sufficient cooling trend, interest rates should be raised.

Barr warned that price pressures have been above target for over five years and are at risk of becoming entrenched. He acknowledged the Fed's ability to be patient with upcoming data but stressed the need for decisive action if inflation does not moderate sufficiently.