Fed Governor Barr Warns More Rate Hikes Likely Needed as Growth Accelerates
· Business · Bloomberg, LiveMint
Federal Reserve Governor Michael Barr repeated a warning on Tuesday that further interest-rate increases will likely be necessary to slow inflation. Speaking in Washington, Barr noted that economic growth has continued to pick up pace despite previous monetary tightening. The central bank has maintained its benchmark borrowing costs at elevated levels while monitoring incoming price data. Policymakers continue to evaluate whether financial conditions are sufficiently restrictive to bring inflation back down to the 2% target. Additional policy adjustments will depend on upcoming economic indicators and employment figures.
Why it matters
Borrowers and businesses face prolonged higher borrowing costs as the US central bank keeps monetary policy tight to curb inflation.
Read the original report — Bloomberg
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