Latest news with #MichaelBarr
Yahoo
6 days ago
- Business
- Yahoo
Fed's Barr says banks must manage climate risk
(Reuters) -Federal Reserve Governor Michael Barr on Thursday said the U.S. central bank needs to ensure that banks are measuring and managing climate-related risk as they do other risks. "I think climate risk is a real risk for us as a society and is likely to be a risk for the financial system unless we pay attention to it now," Barr said in answer to a question at a community development conference at the Cleveland Fed. "We don't make climate policy. We don't want to make climate policy. But our role is to make sure that the institutions we supervise are operating in a safe and sound way. And that means paying attention to how they're measuring and managing climate-related risks."
Reuters
6 days ago
- Business
- Reuters
Fed's Barr says banks must manage climate risk
June 26 (Reuters) - Federal Reserve Governor Michael Barr on Thursday said the U.S. central bank needs to ensure that banks are measuring and managing climate-related risk as they do other risks. "I think climate risk is a real risk for us as a society and is likely to be a risk for the financial system unless we pay attention to it now," Barr said in answer to a question at a community development conference at the Cleveland Fed. "We don't make climate policy. We don't want to make climate policy. But our role is to make sure that the institutions we supervise are operating in a safe and sound way. And that means paying attention to how they're measuring and managing climate-related risks."
Reuters
6 days ago
- Business
- Reuters
Fed well positioned to wait to see what tariffs do, Barr says
June 26 (Reuters) - President Donald Trump's tariffs will likely increase inflation and could also drive up unemployment, Federal Reserve Governor Michael Barr said on Thursday in remarks that signaled that he - like most of his Fed colleagues - wants to wait for more clarity before making any interest-rate cuts. "Low-income households can ill afford increases in prices, and that's why it is so important that we bring inflation back down to our target," Barr said at a community development event at the Cleveland Fed. The Fed targets 2% inflation, and while the latest read by the Fed's targeted measure was 2.1%, professional forecasters expect a government report due on Friday to show that ticked up in May, with more expected in coming months as businesses pass tariff-driven cost increases on to consumers. Barr said he expects tariffs to put upward pressure on inflation. Households expect inflation to rise sharply in the near-term, surveys show; Barr said this along with supply chain adjustments and second-round effects could cause "some inflation persistence." "At the same time, tariffs may cause the economy to slow and unemployment to rise," he said, with low-income workers often the hardest hit when the job market weakens. The unemployment rate is 4.2%, and though layoffs have been low, hiring has also been sluggish. That means, Fed Chair Jerome Powell said this week, that if companies do start to let workers go the unemployment rate could rise quickly. "There is still considerable uncertainty about tariff policies and their effects," Barr said. "Monetary policy is well positioned to allow us to wait and see how economic conditions unfold." Barr last week joined in a unanimous decision at the Fed to keep short-term borrowing costs in the 4.25%-4.50% range where they have been since December. Fed projections suggest many policymakers want to cut rates a couple of times this year, a path that points to a September start to that process once the Fed has data in hand on how the job market and inflation fare over the summer.
Yahoo
6 days ago
- Business
- Yahoo
Fed well positioned to wait to see what tariffs do, Barr says
(Reuters) -President Donald Trump's tariffs will likely increase inflation and could also drive up unemployment, Federal Reserve Governor Michael Barr said on Thursday in remarks that signaled that he - like most of his Fed colleagues - wants to wait for more clarity before making any interest-rate cuts. "Low-income households can ill afford increases in prices, and that's why it is so important that we bring inflation back down to our target," Barr said at a community development event at the Cleveland Fed. The Fed targets 2% inflation, and while the latest read by the Fed's targeted measure was 2.1%, professional forecasters expect a government report due on Friday to show that ticked up in May, with more expected in coming months as businesses pass tariff-driven cost increases on to consumers. Barr said he expects tariffs to put upward pressure on inflation. Households expect inflation to rise sharply in the near-term, surveys show; Barr said this along with supply chain adjustments and second-round effects could cause "some inflation persistence." "At the same time, tariffs may cause the economy to slow and unemployment to rise," he said, with low-income workers often the hardest hit when the job market weakens. The unemployment rate is 4.2%, and though layoffs have been low, hiring has also been sluggish. That means, Fed Chair Jerome Powell said this week, that if companies do start to let workers go the unemployment rate could rise quickly. "There is still considerable uncertainty about tariff policies and their effects," Barr said. "Monetary policy is well positioned to allow us to wait and see how economic conditions unfold." Barr last week joined in a unanimous decision at the Fed to keep short-term borrowing costs in the 4.25%-4.50% range where they have been since December. Fed projections suggest many policymakers want to cut rates a couple of times this year, a path that points to a September start to that process once the Fed has data in hand on how the job market and inflation fare over the summer. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
24-06-2025
- Business
- Reuters
Fed's Barr: inflation to rise, may see some persistence
June 24 (Reuters) - Higher import levies will put upward pressure on prices that may not prove temporary, Federal Reserve Governor Michael Barr said on Tuesday in remarks that suggest he is in no rush to cut interest rates despite what he called "gradual, albeit uneven" progress toward 2% inflation to date. "I expect inflation to rise due to tariffs," Barr said in remarks prepared to open an event in Omaha, Nebraska aimed at getting feedback on Fed policy and a read on current economic conditions from business and community leaders. "Higher short-term inflation expectations, supply chain adjustments, and second-round effects may cause some inflation persistence." At the same time, he added, tariffs may slow the economy and drive up unemployment, which has been low and steady. May's unemployment rate was 4.2%. "There is still considerable uncertainty about tariff policies and their effects," Barr said. "Monetary policy is well positioned to allow us to wait and see how economic conditions unfold." The Fed last week left short-term borrowing costs in the 4.25%-4.50% range. Fed Chair Jerome Powell in congressional testimony earlier on Tuesday underscored the central bank's "wait-and-see" approach to interest-rate setting as it assesses the effect of tariffs on inflation over the next few months. Barr's remarks differ from those of Fed Governor Christopher Waller and Fed Vice Chair for Supervision Michelle Bowman, each of whom in recent days said they could see a July rate cut given their view that tariffs are likely to deliver only a one-time bump to inflation. "Monetary policy sometimes requires tradeoffs - a stance of policy that is necessary to lower inflation, for example, may also lower aggregate demand and slow the economy," Barr said. "Crucial in balancing our economic goals is determining how policy decisions affect households and businesses, which is why we are here to listen to you."
