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Wednesday, September 30, 2026

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Speech · Wednesday, September 30, 2026

Fed’s Barr: inflation still too high; more hikes likely in his base case

The File desk · Sep 30, 2026, 10:16 AM UTC

Status

Confirmed (Federal Reserve Board speech page, Sept. 29, 2026)

On Sept. 29, 2026, Federal Reserve Governor Michael S. Barr spoke in Detroit on economic conditions and monetary policy. He said the economy grew at roughly a 2 percent pace in the first half of 2026 and that unemployment is 4.1 percent. He said inflation has run above the Federal Open Market Committee’s 2 percent personal consumption expenditures price target for five and a half years, with energy prices and artificial-intelligence-related demand still adding pressure. He said the committee unanimously raised short-term rates earlier this month, and that in his base case further policy adjustments are likely to be needed so inflation comes down in time. The views are his own, not necessarily the Board’s or the committee’s.

Federal Reserve Governor Michael S. Barr spoke in Detroit on Sept. 29, 2026.

The speech is titled “Economic Conditions and Monetary Policy.”

He said the economy grew at roughly a 2 percent pace in the first half of 2026.

Unemployment, he said, is 4.1 percent.

Inflation has run above the Federal Open Market Committee’s 2 percent personal consumption expenditures price target for five and a half years.

He pointed to energy prices and to demand tied to artificial intelligence, including chips, as pressure that is still in the numbers.

Earlier this month, he said, the committee unanimously agreed to raise short-term policy interest rates.

His base-case sentence: “In my base case, further policy adjustments are likely to be needed to ensure inflation comes down to target in a timely fashion.”

A footnote on the speech says the views are his own. They are not necessarily the Board of Governors’ or the committee’s.

The speech is not a new price index and not a committee vote.

What is still unknown or disputed

Primary sources

Every claim in this story is drawn from the documents below. If a fetch failed, that is recorded on the card.

  1. Source 1

    Economic Conditions and Monetary Policy

    Board of Governors of the Federal Reserve System · September 29, 2026

    Inflation has run above the Federal Open Market Committee’s 2 percent target for five and a half years. Unemployment rate of 4.1 percent. Earlier this month, the committee unanimously agreed to raise short-term policy interest rates. In my base case, further policy adjustments are likely to be needed to ensure inflation comes down to target in a timely fashion.

    https://www.federalreserve.gov/newsevents/speech/barr20260929a.htm