Federal Reserve Governor Barr says further interest rate hikes may be necessary and the risk of inflation returning to 2% is increasing

Federal Reserve Governor Barr (permanent voting member) stated that it may be necessary to continue raising interest rates and to recalibrate policy. The baseline scenario is that further policy adjustments may be needed. Inflation remains a key issue; the Federal Reserve has been "forced to stray" from the 2% target, and inflation returning promptly to the 2% trend is not obvious, with risks to achieving the inflation target having increased. Barr also noted that compared to the 2% growth rate in the first half of the year, GDP growth in the second half is expected to "pick up slightly." The risks to achieving the inflation target have increased, while risks in the labor market have diminished.