Federal Reserve Governor Michael Barr stated that if inflation fails to subside, the Fed should be prepared to raise interest rates. He warned that inflation has consistently exceeded its target for more than five years, and there is a deeply rooted risk of persistent price pressures. Barr said that if upcoming data show inflation is cooling, policymakers can afford to be patient. In the text of his speech at an event in Washington on Tuesday, Barr said: "If the data trends give me confidence t

Federal Reserve Board Member Michael Barr stated that if inflation fails to fall back, the Federal Reserve should be prepared to raise interest rates. He warned that the inflation rate has consistently exceeded the target for more than 5 years, posing risks of deeply rooted price pressures. Barr indicated that if upcoming data can show inflation is cooling down, policymakers can remain patient. In the transcript of his speech at an event in Washington on Tuesday, Barr said: "If data trends give me confidence that inflation is easing and moving toward the 2% target, then I think we can take more time to assess our policy stance. But if inflation does not appear to be cooling sufficiently, then I believe we should act decisively and raise interest rates."