Fed’s Barr Calls for Caution Toward Additional Rate Cuts (1)

Federal Reserve Governor Michael Barr called for a cautious approach toward further interest-rate cuts, emphasizing the possibility that tariffs will create persistent inflation.

“Common sense would indicate that when there is a lot of uncertainty, one should move cautiously,” Barr said Thursday in remarks prepared for an event with the Economic Club of Minnesota.

Fed officials “should be cautious about adjusting policy so that we can gather further data, update our forecasts, and better assess the balance of risks,” he said.

The US central bank last month lowered its benchmark interest rate by a quarter percentage ...