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Fed Governor Barr says he'll support rate hike if inflation doesn't ease
CNBC • • business
Key Points:
- Federal Reserve Governor Michael Barr indicated he is ready to support an interest rate hike if inflation does not show signs of easing toward the Fed's 2% target.
- Barr expressed concern about persistent inflation, which has remained above target for nearly five and a half years, and emphasized the need to act decisively if inflation fails to moderate.
- His comments come amid rising Treasury yields and heightened geopolitical tensions in the Middle East, with markets pricing in a 66% chance of a rate increase at the upcoming Fed meeting.
- Despite inflation concerns, Barr noted that consumer spending has been resilient, but maintained that inflation remains unacceptably high.
- As a permanent voting member of the Federal Open Market Committee, Barr's stance is influential in shaping upcoming monetary policy decisions.
