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; how

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.