Fed’s Barr Says Future Interest Rate Hikes ‘Likely’ Needed to Tame Inflation
- Fed Governor Michael Barr stated "further policy adjustments are likely to be needed to ensure inflation comes down to target in a timely fashion." He emphasized that price stability remains crucial for maximum employment.
- Input costs for Firms jumped at the steepest rate in four years, with fuel and transport prices spiking higher. Chris Williamson, chief business economist at Market Intelligence, said this will "add further to the upward pressure on selling prices and inflation in the coming months."
- Treasury yields soared, with the 2-year note climbing more than 13 basis points to 4.9%. FedWatch data shows a 71% probability of a rate hike when the Federal Open Market Committee meets Oct. 27-28.
- Last week, the Federal Open Market Committee approved a rate increase moving the benchmark to 3.75%-4%. Barr called the move an "important action" he supported along with the other 11 FOMC voters.
- Expansion in the Service sector hit its fastest rate since 2002, as Job growth rose at a pace rarely exceeded since 2009. Though of 18 meeting participants, only two did not expect another increase this year.
33 Articles
33 Articles
U.S. Federal Reserve member Michael Bar said that the central bank might need to raise interest rates.
Barr, who is part of the Federal Open Market Committee (FOMC), defended last week's unanimous decision to raise the reference rate by a quarter of a percentage point.
Fed’s Barr says future interest rate hikes ‘likely’ needed to tame inflation
Federal Reserve Governor Michael Barr said Wednesday the central bank will “likely” raise interest rates again to counter persistent inflation, after it did so last week for the first time in three-plus years. Barr, a member of the rate-setting Federal Open Market Committee (FOMC), said the unanimous decision to raise the benchmark interest rate by…
Indices in the red after strong economic activity data and Michael Barr's statements that strengthened estimates for a new interest rate hike by the Fed - Brake and the jump in oil above $100
Federal Reserve Governor Michael Barr signaled that further tightening will be needed to curb inflation after last week's 25-basis-point interest rate hike. The central banker spoke about the outlook for monetary policy at the Chicago Fed's housing conference.
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