Fed's Barr: Future Interest Rate Hikes 'Likely' Needed to Tame Inflation

Federal Reserve Governor Michael Barr said that future interest rate hikes are 'likely' needed to tame inflation. This comes after the central bank raised rates last week for the first time in three-plus years by a quarter point.

Barr, a member of the rate-setting Federal Open Market Committee (FOMC), stated that the decision was the 'right' one given that inflation is above the 2 percent target and not trending toward it in a timely way. The FOMC raised rates to a range of 3.75 percent to 4 percent.

The Fed governor added that further policy adjustments are likely needed to ensure inflation comes down to target in a timely fashion. Annual inflation has remained above the target since March 2021 and was 3.4 percent last month, as measured by the consumer price index.