Fed’s Barr Says Rates May Need to Hold Steady for ‘Some Time’

Federal Reserve Governor Michael Barr said policymakers may need to keep interest rates steady for “some time” to address inflation that’s notably above the central bank’s 2% goal.

“While I am hopeful that inflation will fall as the effects of tariffs on prices wane later this year, I would like to see evidence that goods and services price inflation is sustainably retreating before considering reducing the policy rate further, provided labor market conditions remain stable,” Barr said Tuesday in remarks prepared for an event in Phoenix.

Barr said he supported the Fed’s decision last week to leave its benchmark policy ...