Back to today’s briefing

Story perspectives

Fed's Barr Warns of Long-Term Inflation Risks Ahead

10/10/2025

27 5

Summary

Story summary

Michael Barr, a Federal Reserve Governor, cautioned against further rate cuts amid inflation risks, including tariffs.
He said inflation may not return to 2% until end of 2027, the longest stretch above target since 1993.
Barr noted a balanced labor market and the potential for higher inflation as firms adjust profit margins.
The Federal Reserve will consider data before policy changes, with the next decision scheduled for October 28–29, 2025.

1 of 1

Story summary

Michael Barr, a Federal Reserve Governor, cautioned against further rate cuts amid inflation risks, including tariffs.
He said inflation may not return to 2% until end of 2027, the longest stretch above target since 1993.
Barr noted a balanced labor market and the potential for higher inflation as firms adjust profit margins.
The Federal Reserve will consider data before policy changes, with the next decision scheduled for October 28–29, 2025.