Barr Signals Support for Rate Hike if Inflation Persists

Federal Reserve Governor Michael Barr said he is ready to back another interest-rate increase if price growth fails to moderate. His remarks suggest the central bank's fight against inflation may require additional tightening.

Barr said he is worried that broader price pressures could take hold, noting that inflation has stayed stubbornly above the Fed's 2% target. He emphasized the importance of ensuring price gains do not become entrenched across the economy.

The comments add to a hawkish tone among some policymakers who believe the current policy stance is not yet restrictive enough. The Fed has already raised rates aggressively, but recent inflation readings remain elevated.

Barr stressed that future decisions will depend on incoming data. If inflation does not show clear signs of easing, another hike could be justified. His remarks highlight the cautious, data-driven approach the central bank is taking as it weighs next steps.