Fed Governor Barr signals potential for further rate hikes

Federal Reserve Governor Michael Barr stated he will support additional interest rate increases if inflation fails to show signs of cooling. He expressed concern regarding broader price pressures becoming entrenched in the economy. Inflation remains persistently above the Federal Reserve's 2 percent target. Policymakers are monitoring data to determine if current restrictive policy is sufficient to bring price growth back to the mandate. Market participants are monitoring upcoming inflation data for evidence of a sustained downward trend.