Lates News

Federal Reserve Governor Barr said the Fed may need to raise interest rates further to ensure inflation falls back to its target level in a timely manner. Barr said on Wednesday that he supported the Fed's decision last week to raise rates by 25 basis points, and that the risks facing the Fed in achieving its inflation target have risen. He said: "Inflation remains above our 2% target and has not clearly shown a trend of returning to target in a timely manner. In my baseline scenario, further policy adjustments may be needed to ensure inflation falls back to the target level in a timely manner." Barr said that over the past year and a half, the U.S. economy has experienced a series of shocks, and these factors have intensified upward pressure on prices. These include tariffs, the conflict in the Middle East, disruptions caused by Russia's war against Ukraine, and the recent surge in investment demand to support the construction of artificial intelligence infrastructure.