Fed Governor Barr backs further interest rate hikes amid sticky inflation
CIE News ·
Federal Reserve Governor Michael Barr signaled a need for additional rate hikes on September 29, 2026, as market expectations for an October increase dropped to around 50% according to crypto.news.
Federal Reserve Governor Michael Barr stated on September 29, 2026, that his baseline expectation requires further interest-rate increases to return inflation to the central bank's target. Speaking at the Detroit Economic Club, Barr argued that policymakers should place greater emphasis on persistent inflation risks rather than cooling employment conditions, according to crypto.news. He noted that only two months out of the previous 20 reflected core PCE readings aligned with the 2% goal, citing artificial intelligence investment and energy costs as ongoing sources of price pressure.
Barr's stance contrasted with remarks from New York Fed President John Williams, who expressed less urgency regarding the timing of the next adjustment. Following the addresses, crypto.news reported that market-implied odds for a quarter-point rate hike in October fell to roughly 50% from about 70%. The Federal Open Market Committee previously lifted the federal funds target range by 25 basis points to 3.75%–4% on September 16.
The policy signals arrived as digital asset markets faced a heavy calendar of U.S. economic data. KuCoin reported that Bitcoin (BTC) traded near $83,000 as investors prepared for upcoming releases covering JOLTS job openings, core PCE inflation, gross domestic product, and September employment figures.