Inflation isn't done: Interest rates likely to rise more, Fed Governor Michael Barr warns

Federal Reserve Governor Michael Barr warned that interest rates may rise further to combat inflation, which is still significantly above the 2% target. Despite strong economic performance, officials anticipate one more rate hike this year as they focus on achieving price stability.

On 29 September, Federal Reserve Governor Michael Barr gave a warning. He said interest rates would likely rise more. This is needed to slow down inflation, he said.

Barr said the same thing last week, too. According to him, the economy is doing well right now. So, slowing inflation is now the bigger worry. Fed officials are focusing more on this problem.

“In my base case, further policy adjustments are likely to be needed to ensure inflation comes down to target in a timely fashion,” Bloomberg quoted Barr as saying.

“We want to support sustainable, durable growth in support of maximum employment, and price stability is crucial to that,” he added in remarks prepared for a Detroit event.

According to Barr, inflation remains some way off of the central bank’s 2% target.

“I don’t yet see a clear trend toward a timely return to 2%,” Barr said.

“While inflation is significantly above the FOMC’s goal, strong business investment and resilient spending by consumers is supporting a solid labor market,” he added.

In September, Fed officials voted together to raise interest rates, for the first time in three years. The rate now stands between 3.75% and 4%.

After the decision, officials also shared new rate forecasts. Most officials expect one more hike this year. Investors also expect rate hikes in October. Another hike could come in December as well.

Barr called the economy's growth pace solid right now. He expects growth to speed up further soon. Low unemployment should help this growth continue.

(This is a developing story. Check back for more details.)

About the Author

Sounak Mukhopadhyay covers trending news, sports and entertainment for LiveMint. His reporting focuses on fast-moving stories, box office performance, digital culture and major cricket developments. He combines real-time updates with clear context for everyday readers. <br><br> Sounak brings newsroom experience across breaking news, explainers and long-form features. He has a strong emphasis on accuracy, verification and responsible storytelling. His work tracks audience behaviour, celebrity influence and the business of sport and cinema. He helps readers understand why a story matters beyond the headline. <br><br> Sounak has contributed to widely read digital publications. He continues to build a body of journalism shaped by consistency, speed and editorial clarity. He is particularly interested in the intersection of media, popular culture and public conversation in contemporary India. <br><br> At LiveMint, he writes daily coverage as well as analytical pieces that interpret numbers, trends and cultural moments in accessible language. His approach prioritises factual depth, balanced framing and reader trust. The reporting aligns with modern newsroom standards of transparency and credibility. <br><br> Outside daily reporting, he explores storytelling across formats including podcasts, filmmaking and narrative non-fiction. Through his journalism, Sounak aims to document the rhythms of modern entertainment and sports while maintaining rigorous editorial integrity. <br><br> Sounak continues to develop audience-focused journalism that connects speed with substance in a rapidly-changing information environment. His work seeks clarity, trust and lasting public value in every story he reports.

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