Central Banks
Barr Says Fed Likely At or Very Near Sufficient Restrictive Rate
- Agree with Powell that Fed can proceed carefully, Barr says
- Barr says he’s highly attuned to risks to both Fed mandates
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Federal Reserve Vice Chair for Supervision Michael Barr said the US central bank is “likely at or very near” a level of interest rates that is sufficiently restrictive, echoing Chair Jerome Powell’s message that officials can proceed carefully on whether to hike again.
Barr, speaking Monday in New York at a Forecasters Club event, argued the bigger question is how long rates will need to stay high, adding that the full effects of past increases on the economy “are yet to come in the months ahead.”