Fed: Possible increase in inflation rate if it does not fall

The Fed warns that if inflation fails to cool in the near future, interest rates may need to rise. Federal Reserve Board member Michael Bar stated that he and the Fed would support the increase unless inflation showed convincing signs of mitigation. The current Federal Fund interest rate target ranges from 3.50 to 3.75 per cent. Bar stated at the Washington Banking Forum that he was concerned about “wider price pressures” because inflation had remained above the Fed’s 2 per cent target for nearly five and a half years。