Fed Governor Bostic: Interest Rates May Need to Remain Stable for ?a While?

March 25 – Federal Reserve Governor Michael Barr said policymakers may need to keep interest rates steady for “some time” to address inflationary pressures well above the central bank’s 2% target. Barr backed the Fed’s decision last week to hold its benchmark policy rate unchanged for the second straight meeting. Officials noted economic uncertainty has risen amid the U.S.-Iran conflict, and they raised their inflation forecasts for this year. Oil prices have jumped since the Middle East conflict began, posing risks of higher inflation and slower economic growth. Barr labeled the situation an “additional risk,” adding high oil prices often quickly pass through to gasoline costs—especially burdensome for low- and middle-income families. (Wall Street News)