Barr Says Fed Must Move Carefully With Inflation Still at 3%

Federal Reserve Governor Michael Barr said the US central bank needs to proceed with caution in considering additional interest-rate cuts with inflation still running a full percentage point above its target.

“I am concerned that we’re seeing inflation still at around 3% and our target is 2% and we’re committed to getting to that 2% target,” Barr said Thursday at an event in Washington. “So we need to be careful and cautious now about monetary policy, because we want to make sure that we’re achieving both sides of our mandate.”

Barr could be a pivotal vote at the Fed’s policy ...