Federal Reserve Governor Bostic: Fed Should Hike Rates Promptly If Inflation Does Not Cool

BlockBeats News, September 1st, Federal Reserve Governor Michael Barr stated that the Fed should be prepared to raise interest rates if inflation fails to retreat.

He warned that inflation has remained above target for over 5 years, with entrenched risks of price pressures. Barr stated that if upcoming data can show that inflation is cooling off, policymakers can remain patient.

In a speech at an event in Washington on Tuesday, Barr said: "If the data trends give me confidence that inflation is moderating and moving toward our 2% target, then I believe we can afford to take some more time to assess our policy stance. But if inflation appears not to be cooling to a sufficient degree, then I think we should act decisively and raise rates." (FXStreet)