TechFlow News, March 25: According to JIN10 Data, Federal Reserve Governor Michael Barr stated that policymakers may need to hold interest rates steady for an extended period to address inflationary pressures significantly above the central bank’s 2% target.
Barr said he supports the Fed’s decision last week—its second consecutive move—to hold the benchmark policy rate unchanged. Officials noted that economic uncertainty has intensified due to the U.S.-Israel conflict with Iran and raised their inflation forecasts for this year. Since the outbreak of the Middle East conflict, oil prices have risen sharply, posing risks of further inflationary pressure and dampening economic growth.
Barr described the Middle East situation as presenting “additional risks.” He pointed out that high oil prices tend to pass through rapidly to gasoline prices—a development especially painful for middle- and low-income households.
