Barr from the Fed says new interest rate adjustments will probably be needed
Federal Reserve Governor Michael S. Barr indicated that new adjustments to interest rate policy will probably be needed to contain American inflation.
AI-generated. Check the date, context and references before using the information in this text.
This post was machine-translated from the original.
Published on September 30, 2026. The news, plans and figures cited reflect that context and may have changed since.
Fed Governor signals need for further adjustments in monetary policy
Federal Reserve Governor Michael S. Barr stated that, in his baseline scenario, further monetary policy adjustments will likely be needed to bring inflation back to the 2% target in a timely manner. The statement was made during a speech at the Detroit Economic Club on September 29, 2026.
Barr highlighted that inflation remains far too high and that a clear trend of returning to the target within the desired timeframe is not yet observed. According to the prepared text, high energy prices and investments related to artificial intelligence contributed to diverting disinflationary progress.
Inflation risks grow while those for employment decrease
The official observed that risks to achieving the inflation target have increased, while risks to the labor market have decreased. The observation comes after the unanimous FOMC decision at the beginning of September to raise short-term interest rates.
The euro retreated against the dollar after the statements, reflecting expectations of higher rates for longer in the United States.
Sources
References recorded in the post, with the date each link was accessed.
0 comments
Access your accountYour session works across the whole site.