Fed's Barr (voter) says if inflation doesn't moderate soon, will be time for an interest rate hike
Fed Governor Michael Barr stated the central bank should raise interest rates if inflation does not moderate sufficiently, noting persistent price pressures alongside solid economic growth.
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Inflation remains too high. Favours steady rates if confident inflation is moderating. Labour market is stable with low unemployment. Economy is growing 'solidly', boosted by AI investment. Persistence of inflation above target creates risk. "At our September FOMC meeting, will again discuss the outlook for inflation and policy stance. If trends in the data give me some confidence that inflation is moderating on a path to 2%, then I think we can take a bit more time to assess our policy stance. However, if inflation appears not to be moderating sufficiently, then think we should act decisively to raise rates."
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