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Fed Governor Michael Barr Says Further Rate Hikes May Be Needed to Fight Inflation

DETROIT: Federal Reserve Governor Michael Barr said further interest-rate increases may be needed to bring U.S. inflation back toward the central bank’s 2% target.

United States government district representative image
United States representative image.

Reuters reported that Barr cited higher energy prices and increased investment in artificial intelligence as factors affecting the inflation outlook. He said the labor market remains solid but that inflation risks have increased.

Barr’s comments come as investors assess the Federal Reserve’s next policy decisions and upcoming inflation and employment data.

Source: Reuters and Federal Reserve.

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Imran Siddiqui

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