Inflation isn't done: Interest rates likely to rise more, Fed Governor Michael Barr warns
Federal Reserve Governor Michael Barr warned that interest rates may rise further to combat inflation, which is still significantly above the 2% target. Despite strong economic performance, officials anticipate one more rate hike this year as they focus on achieving price stability.
Federal Reserve Governor Michael Barr has warned that interest rates may need to rise further to combat inflation. Inflation remains significantly above the 2% target, according to Live Mint.
The economy has performed strongly, with a solid labor market supported by business investment and consumer spending, as reported by FXStreet. GDP growth is expected to pick up in the second half of the year, from a 2% pace in the first half.
According to FXStreet, money markets have priced in a nearly 66% chance of a rate hike at the October meeting and a 94% chance of a rate increase at the December meeting. Barr stated that there is a need to "recalibrate policy" and that further policy adjustments are likely needed.
Brief written by urgent.news from Live Mint, FXStreet — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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