Fed Gov. Barr is speaking and says:
- Overall the US economy is quite strong
- The Fed still needs to finish the job on inflation.
- The Fed needs to sit tight for longer than we previously thought.
- Interest-rate risk will continue. Needs to be managed.
Yesterday Barr said Q1 inflation was disappointing and did not provide the confidence needed to ease monetary policy. The Fed believes it needs to allow tight policy more time to work, and is in a good position to hold steady and monitor the economy. The Fed remains vigilant to the risks to both inflation and employment mandates, considering the current approach prudent for managing these risks
