MNI BRIEF: Fed’s Barr Sees More Disinflation After Jan. ‘Bump’
MNI (WASHINGTON) - U.S. inflation is likely to resume its decline after a January bump higher that was related to seasonal factors and largely expected, Federal Reserve Governor Michael Barr said Tuesday.
“I expect it will moderate again in February and March,” he said during a Q&A at the Council on Foreign Relations. “We’ve made enormous progress on inflation – there’s still a lot more we need to do.” (See MNI: Fed In Holding Pattern As Inflation To Stay High-Ex-Staff) CPI last week grew a hotter-than-expected 0.5% on the month.
Barr said the Fed is still making “meeting by meeting” decisions on interest rates, adding that the economy is strong and the employment picture is stable.
"At least for me, I'm in a wait and see position," Barr said, when asked about tariffs. "I'd like to understand better what the policy is, and then decide what the implications for the economy might be, and then decide what the implications for monetary policy. So, I'm not in a rush."