Fed Governor Michael Barr said disinflation has been disrupted and he does not
see a clear trend toward a timely return of inflation to the 2% target. He said
inflation remains too high and upside risks have increased, while the labor
The market remains relatively firm. Barr said the Fed must recalibrate policy to
better balance employment and inflation risks and that, in the baseline, further
policy adjustments—potentially including additional rate hikes—may be needed to
secure a timely return of inflation to target. He flagged higher global oil
prices from the Middle East conflict and stronger demand for certain high‑tech
goods from AI investment as sources of added price pressure on firms and
consumers.
