Fed Governor Warns of Rate Hike if Inflation Fails to Moderate
Federal Reserve Governor Michael Barr said he will support an interest rate hike if inflation doesn't ease. Speaking at a banking forum in Washington, Barr expressed concern about 'broader price pressures taking hold.'
He stated that if trends in the data give him confidence that inflation is moderating on a path to 2%, then he thinks they can take more time to assess their policy stance. However, if inflation appears not to be moderating sufficiently, then he believes they should act decisively to raise rates.
Other officials have been calling for higher rates for longer. Kansas City Federal Reserve President Jeffrey Schmid said last week that inflation is 'still stubborn and it's still sticky,' and the central bank has not yet managed to 'break through.'