Fed Sees Economy as 'Strikingly' Resilient Amid Interest Rate Hikes

US Federal Reserve Governor Michael Barr emphasized the resilience of the US economy during an interview, calling it 'striking.' He also defended the Fed's decision to raise interest rates last time around.

Barr pointed out that there are elevated wage rates in skilled trades and said the Fed needs to balance supply and demand. According to him, taking a longer view is essential to ensure that the economy can achieve its dual mandate of price stability and full employment.

The Fed's main goal is to keep inflation at or below 2%, but Barr acknowledged that it may not be possible to reach this target in a timely manner unless they adjust their policy. He believes that further adjustments will likely be necessary, citing the need for data-driven decision-making.