Fed governor Barkin said it remains unresolved whether the Fed will need to
raise rates to restore the 2% inflation target or whether inflation is already
on a sustained downtrend. He noted parts of the US economy remain puzzling, with
consumers and overall activity not yet showing effects from shocks. Many Fed
officials view current policy rates as sufficiently restrictive to curb
inflation. With wage pressures moderate and tariffs, oil and other shocks likely
to fade, inflation could ease; however, persistent price pressures might require
Weaker demand or additional rate hikes to meet the Fed's goal.
