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Nick Timiraos, chief economics correspondent at Wall Street Journal, shares remarks from Fed governor Michael Barr regarding U.S. monetary policy. Barr suggests that further policy adjustments are likely necessary to bring inflation down to the Federal Reserve's target in a timely manner. He also points out that, in the past 20 months, only two months of data have shown core PCE inflation consistent with a 2% rate.
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Earlier, Timiraos reported that investors were widely expecting the Federal Reserve to raise interest rates for the first time in three years, though subsequent policy steps remained uncertain (read more). In a separate note, he highlighted Fed governor Chris Waller’s move from a tightening bias to favoring a rate hold amid shifting economic signals (read more). These updates provide context for Barr's recent comments on the Fed’s inflation challenge.