Fed Governor Barr suggests further rate hikes needed to combat inflation

Federal Reserve Governor Michael Barr said the central bank will likely raise interest rates again to counter persistent inflation. Barr stated that further policy adjustments are likely needed to ensure inflation reaches the 2 percent target in a timely manner. This follows a recent unanimous decision by the Federal Open Market Committee to raise the benchmark interest rate by a quarter point.

Barr's comments suggest the central bank views inflation as too high and not trending toward the target quickly enough. The Federal Open Market Committee's recent rate hike was intended to support a return to the 2 percent inflation goal.