Fed/Barr: Road to return to inflation target will be bumpy

The Fed’s Vice Chairman for Supervision Michael Barr said that stronger-than-expected inflation in January suggested that the path back to 2% inflation “may be bumpy.” The Fed needs to see more data that inflation has returned to 2% before it starts cutting interest rates, Vice Chairman for Supervision Michael Barr said. “As Chairman Powell noted at his most recent press conference, my FOMC colleagues and I are confident that we are headed for 2% inflation, but we need to see good data continue before we can begin the process of lowering the federal funds rate,” Barr said. Barr also said Tuesday’s stronger-than-expected inflation data was a reminder that the Fed’s path back to its inflation target could be “bumpy.”