Fed's Barr Says Path to 2% Inflation May Be 'Bumpy'

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Bloomberg Feb 15 00:22 · 11.1k Views

Federal Reserve Vice Chair for Supervision Michael Barr says he supports Fed Chair Jerome Powell's "careful" approach to rate cuts during remarks at a National Association for Business Economics event.

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Transcript

  • 00:00 As central bankers, we always need to consider the full range of risks to achieving both of our goals.
  • 00:07 We're always assessing risks on the horizon,
  • 00:09 including the risk of an economic slowdown that could reduce employment
  • 00:14 or the risk that inflation does not stay on its path sustainably returning to 2%.
  • 00:21 As Chair Powell indicated in his most recent press conference,
  • 00:24 my FOMC colleagues and I
  • 00:26 are confident that we are on a path to 2% inflation,
  • 00:30 but we need to see continued good data before we can begin the process of reducing the federal funds rate.
  • 00:38 I fully support what he called a careful approach to considering policy normalization
  • 00:43 given current conditions.
  • 00:45 January's report on Consumer Price
  • 00:49 Consumer Product Index inflation
  • 00:51 is a reminder that the path back to 2% inflation
  • 00:55 may be a bumpy 1.