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The case for another rate hike just got a named advocate, though the condition attached is doing a lot of work.
Fed Governor Michael Barr said he would support raising interest rates if inflation fails to cool, citing concern about broader price pressures taking hold at levels that have kept inflation persistently above the Federal Reserve's 2% target.
The read-through here starts with timing. Inflation above the 2% target isn't new information.
What's changed is a sitting governor attaching his name to a willingness to hike, a signal that internal Fed tolerance for above-target readings may be narrowing.
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