Fed Gov. Barr is also speaking and says:
- Progress has been made on inflation, but there is still work to do.
- Two-speed economy with wealthier households thriving
- Fed has to pay attention to ensuring the job market is solid
- Low hiring part of low-hire. Low fire environment may be showing some effect of AI adoption in some sectors.
- Big gap in economy right now between upper 40% and everyone else.
- Makes it harder for less well off to save, more at risk of shocks
Barr is best characterised as a mild dove on interest-rate policy: he is willing to wait and monitor data rather than push for immediate cuts.
However, he is struggling with concerns that inflation is not where it should be, but also weary of the employment market getting weaker.
Barr is a permanent voting member on the FOMC board as a governor. He voted to cut rates at the last meeting.
