Market Flux Event
Fed Governor Barr Signals Further Rate Hikes Needed as Inflation Risks Rise
Read this in the Market Flux appFederal Reserve Governor Michael Barr said on September 29 that further interest rate adjustments are likely needed, warning that the United States has no clear path back to the Fed's 2% inflation target without additional policy tightening. Barr described the last rate hike as appropriate and said inflation risks have increased while labor-market risks have receded, shifting the balance of concerns decisively toward prices.
Barr expects U.S. economic growth to accelerate from its roughly 2% first-half pace, with artificial intelligence investment providing an additional boost in the coming year. He cautioned, however, that AI could cause serious short-term disruption to labor markets. The Fed, he said, remains focused on what incoming data reveal about the evolving outlook and balance of risks as it calibrates future moves.
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Sources
- DeItaoneFED’S BARR SEES MORE RATE HIKES AHEAD Fed Governor Michael Barr says further policy adjustments are likely needed, warning that inflation risks have increased while labor-market risks have receded. Barr expects U.S. growth to accelerate from the 2% first-half pace, with AI investment providing another boost next year. He sees no clear path back to 2% inflation, while warning AI could cause serious short-term labor-market disruption.
- Cablefxmacro🏦🇺🇸*FED'S BARR: LIKELY TO NEED FURTHER RATE ADJUSTMENTS
- FirstSquawkFED'S BARR SAYS THE LAST HIKE WAS APPROPRIATE AND THAT HE THINKS THE FED WILL LIKELY NEED FURTHER ADJUSTMENTS, SEEING THE U.S. NOT GETTING TO ITS 2% INFLATION TARGET IN A TIMELY WAY UNLESS POLICY IS ADJUSTED, WITH ALL THE FED'S FOCUS ON WHAT THE DATA TELL IT ABOUT THE EVOLVING OUTLOOK AND BALANCE OF RISKS.
- StaunovoFed's Barr says more rate hikes likely to be needed to curb inflation