MNI BRIEF: Fed Well Positioned To Wait On Rate Move - Barr

Federal Reserve Governor Michael Barr said Tuesday the Fed can wait to see how tariffs affect the economy before adjusting interest rates. His comments largely echoed those of Fed Chair Jerome Powell in Congressional testimony earlier in the day. 

"There is still considerable uncertainty about tariff policies and their effects. Monetary policy is well positioned to allow us to wait and see how economic conditions unfold," he said in opening remarks for a Fed Listens event in Kansas City, Mo. 

The economy is currently on a sound footing with low unemployment and disinflation continuing. But inflation is expected to rise due to tariffs, Barr said. 

"Higher short-term inflation expectations, supply chain adjustments, and second-round effects may cause some inflation persistence. At the same time, tariffs may cause the economy to slow and unemployment to rise," he said. "Stable prices are important for families and businesses to be able to plan for the future, and for sustainable and healthy labor markets." (See: MNI INTERVIEW: Hiring Softer But Not Enough For Fed Rate Cuts)