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Fed's Barr Warns of Inflation Risks Amid Middle East Turmoil

3/27/2026

Summary

Story summary

Federal Reserve Governor Michael Barr said policymakers are prepared to hold rates steady amid Middle East uncertainty and inflation risks.
He noted tariffs may keep inflating prices beyond this year, while core inflation remains high.
Barr warned rising inflation expectations could trigger a price shock if the conflict endures.
He criticized Vice Chair Michelle Bowman's proposals to ease bank regulations, saying they could undermine resilience, during a Brookings Institution speech.

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Story summary

Federal Reserve Governor Michael Barr said policymakers are prepared to hold rates steady amid Middle East uncertainty and inflation risks.
He noted tariffs may keep inflating prices beyond this year, while core inflation remains high.
Barr warned rising inflation expectations could trigger a price shock if the conflict endures.
He criticized Vice Chair Michelle Bowman's proposals to ease bank regulations, saying they could undermine resilience, during a Brookings Institution speech.