Fed Governor Barr Signals Decisive Rate Hikes if Inflation Persists

Federal Reserve Governor Michael Barr stated in a September 1 speech that the central bank "should act decisively to raise" short-term interest rates if inflation does not trend downward. Barr emphasized the risk of broader price pressures taking hold with inflation above target for a protracted period. This hawkish stance has increased the probability of a quarter-point rate hike at the upcoming September FOMC meeting to 68.2%, according to the CME Group FedWatch tool.