Federal Reserve Governor Michael Barr said Wednesday that the balance of risks facing U.S. monetary policy has shifted in recent quarters amid compounding inflation pressures, supporting his view that “further policy adjustments are likely to be needed.”
“Economic growth is strong and the labor market is solid, but inflation is above our 2% target and not clearly trending toward target in a timely way,” he said, delivering prepared remarks at a community development summit hosted by the Federal Reserve Bank of Chicago. The Fed pursues a dual mandate to achieve price stability and full employment.
“Moreover, risks to achieving our inflation target have increased while risks to labor markets have receded,” continued Barr, who oversees consume...