PRIMER - Today’s Fedspeak includes: Barr

14:05BST/09:05EDT: Fed’s Barr (voter) will give remarks on the economic outlook. Speaking in May, Barr warned that shrinking the Fed’s USD 6.7tln balance sheet was the “wrong objective”, and could threaten financial stability. Barr said reducing liquidity requirements could weaken bank resilience and money-market functioning, while inflation remains the economy’s “overwhelming” risk. His comments were seen as a rebuttal of incoming Chair Kevin Warsh’s calls for a smaller balance sheet. In June, Barr argued that regulators should maintain or strengthen bank regulation as risks from nonbank lenders grow. He said banks and nonbanks such as private equity, private credit and hedge funds are increasingly interconnected, with bank credit commitments exceeding USD 2.6tln last year, creating credit, asset-price and contagion risks. He last spoke directly on policy in March, where he said that higher oil prices from the Iran conflict could lift inflation expectations, and said that the Fed should wait before cutting rates further.