Fed Governor: Keeping Rates Steady is Prudent Amid Rising Uncertainty

2026-03-27 02:36:20

On March 27th, Federal Reserve Governor Michael Barr stated that policymakers are in a position to maintain interest rates steady as the conflict in the Middle East and other factors complicate the path to the 2% inflation target. Barr emphasized that the impact of tariffs on inflation could extend beyond this year, while also noting that non-housing services inflation and core inflation remain elevated. “Given the considerable uncertainty that the developments in the Middle East could create for our economy, and the other factors I mentioned, it is prudent to take some time to assess the situation,” Barr said on Thursday while speaking at the Brookings Institution in Washington. “Our current policy stance leaves us well-positioned to keep policy unchanged as we assess new data, the economic outlook, and the balance of risks.” (Zhitong Finance)

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