Fed Sees Further Policy Moves as US Inflation Remains Above Target

US Federal Reserve Governor Michael Barr stated that further monetary policy adjustments will be necessary to bring inflation back within the central bank's target of 2% in a timely manner. Speaking at the Housing Affordability 2026: A Community Development Summit, hosted by the Federal Reserve Bank of Chicago, Barr emphasized that economic growth remains strong and the labor market solid, but inflation is still above the Fed's target.

Barr supported last week's increase in the policy rate, calling it an adjustment 'in the right direction.' He noted that risks to achieving the Fed's inflation target have increased while risks to the labor market have receded, requiring monetary policy to be recalibrated. The Federal Reserve seeks to achieve maximum employment and stable prices.