Fed Governor Barr said he supports last week's 25bp rate increase and that
further tightening may be required to ensure inflation returns to the Fed's 2%
target in a timely manner. He said risks to achieving the inflation goal have
risen and, in his baseline, additional policy adjustments could be necessary.
Barr cited a series of shocks over the past 18 months—tariffs, the Middle East
conflict, disruptions from Russia's war in Ukraine and a recent surge in
investment to support AI infrastructure—as amplifying upward price pressures.
