Fed's Barr Calls for More Rate Hikes to Tame Inflation

Federal Reserve Governor Michael Barr stated that further interest rate hikes will likely be necessary to bring down inflation.

In prepared remarks for a Chicago Fed housing affordability conference, Barr said that while US economic growth is strong and the labor market is solid, inflation remains above the Fed's 2% goal and is not headed clearly downward.

Barr noted that the Fed took an important step last week to 'recalibrate' short-term borrowing costs by raising the central bank's policy rate to the 3.75-4% range, with 16 of 18 policymakers signaling at least one more rate hike before the end of this year.

Barr stated that in his base case, further policy adjustments are likely needed to ensure inflation comes down to target in a timely fashion.