Michael Barr, a member of the U.S. Federal Reserve (Fed), said on the 1st (local time) that he is prepared to support an interest rate hike if inflation does not ease.
Barr said in a speech at a forum in Washington that inflation has been running above the Fed's 2% target for nearly five and a half years, adding, "I worry that broader price pressures could take hold." He added, "If inflation does not ease sufficiently, I think we must raise rates decisively."
He added, however, "If the flow of data gives some confidence that inflation is on a path toward 2%, I think we can take a bit more time to assess the policy stance."
Earlier, Chair Waller said on the 28th at the Jackson Hole Economic Policy Symposium (Jackson Hole meeting), "We must have confidence that underlying inflation is clearly and fast enough moving toward the target," adding, "If not, we still have work to do." The remarks suggested a rate hike could be on the table if price increases do not slow sufficiently.
By contrast, U.S. President Donald Trump said on the 31st, "Our (U.S.) interest rates are too high," adding, "U.S. interest rates should be the lowest in the world."