Fed’s Barr Says It Makes Sense to Hold Rates Amid Uncertainty

Federal Reserve Governor Michael Barr said policymakers are well positioned to hold interest rates steady, as conflict in the Middle East and other factors complicate their ability to nudge inflation toward the 2% target.

Barr highlighted the possibility that the impact of tariffs on inflation may continue beyond this year, while also noting that non-housing services inflation and core inflation, which excludes the volatile categories of food and energy, are both elevated.

“Given the considerable uncertainty about the potential effects of developments in the Middle East on our economy, as well as the other factors I mentioned, it makes sense ...