The post Fed’s Michael Barr Says More Hikes Likely Needed as October Rate Hike Odds Fall appeared on BitcoinEthereumNews.com.
Federal Reserve Board Governor Michael Barr has reiterated that the Fed may need to raise rates further to bring inflation down to its 2% target. This comes as crypto traders reduce their bets on a potential October Fed rate hike, which would be the second hike this year. Ad Ad Michael Says More Fed Rate Hikes Likely Needed In a speech in Detroit, the Fed governor said that, in his base case, they may need to raise rates further to ensure inflation comes down to their target in a timely fashion. “We want to support sustainable, durable growth in support of maximum employment, and price stability is crucial to that,” he said. His comment comes just weeks after the Fed delivered the first rate hike since 2023 at the September FOMC meeting. Barr warned that they need to address risks to achieving their inflation target and suggested that they were in a good position to make more Fed rate hikes with the economy strong and the labor market solid. He also noted that inflation risks had increased while downside risks to the labor market had cooled. As such, he believes they need to recalibrate policy to better balance inflation and labor market risks. Barr is among a host of Fed officials who continue to raise concerns about rising inflation. These inflation concerns have increased amid Middle East uncertainty, with the U.S.-Iran war driving energy prices higher. Ad Ad Odds Of A Rate Increase In October Fall Crypto traders have reduced their bets on an October Fed rate hike despite Barr’s statement that more rate increases are needed. Data from the top prediction market platform Polymarket shows a 50% chance that the Fed will raise rates, down from a high of 70%. Source: Polymarket This comes ahead of tomorrow’s release of…