In a speech overnight, Fed Vice Chair Michael Barr noted that the FOMC is “confident” that US is “on a path to 2% inflation”. However, Barr underscored the importance of seeing “continued good data” before initiating reduction in federal funds rate.
Reflecting on the latest consumer product index inflation report, he acknowledged the potential for a “bumpy” journey back to the target inflation rate, emphasizing the need for a “careful approach” in the current economic climate.
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