Fed’s Barr: Further rate hikes are likely needed to ensure timely return to 2% inflation

  • Risks to achieving 2% inflation have increased, risks to labor market have receeded
  • Going into recent policy meeting, Fed needed to recalibrate mon pol to reflect risks
  • Fed was out of position and made an adjsutment in the right direction
  • Inflation is not clearly trending towards target in a timely way, economic growth is strong, labor market is solid

Growth got even better with today’s US S&P Global PMI hitting a five-year high.

This article was written by Adam Button at investinglive.com.

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