Fed Official Warns of Permanent Price Pressures Amid Inflation Concerns

Federal Reserve Board member Michael Barr stated that he is prepared to support interest rate hikes if inflation does not fall sufficiently.

Barr made this statement at a banking forum in Washington, where he discussed the risks of broader price pressures becoming permanent in the economy due to inflation remaining above the Fed's 2 percent target for nearly five and a half years.

In his prepared speech, Barr emphasized that if inflation does not appear to be slowing sufficiently, 'we must act decisively and raise interest rates.'

Barr also noted that despite high inflation, the overall outlook for the U.S. economy remains resilient, with consumer spending having so far remained largely resilient.