Suggesting that interest rates will not be lowered for the time being! Federal Reserve Board member Bahr: Inflation exceeding target + oil price risk, interest rates need to remain unchanged "for a period of time"

Federal Reserve Governor Michael Barr said on Tuesday that the Federal Reserve may need to maintain stable interest rates for "a period of time" before further lowering them. He pointed out that the inflation rate has been consistently higher than the Federal Reserve's 2% target, as well as the risks brought by the ongoing conflicts in the Middle East. Barr said in prepared remarks for a community development conference that the job market "appears to be stabilizing." In contrast, Barr said, "We still face a situation where the inflation rate is significantly higher than the 2% target," with the core personal consumption expenditures price index preferred by the central bank running about a percentage point above that level. While Barr said he "hopes" inflation will decrease this year, he noted that this hope may be at risk as rising oil prices push up gasoline and other consumption costs. He stated, "Before considering further lowering the policy rate, I would like to see evidence of continued moderation in goods and services price inflation, provided labor market conditions remain stable." The Federal Reserve kept the policy rate unchanged in a range of 3.5% to 3.75% at its meeting last week, with policymakers indicating they still expect at least one more rate cut this year. However, given high oil prices, this outlook has been questioned, and investors now expect the Federal Reserve to keep rates unchanged and increasingly anticipate a rate hike by the end of the year.