- Fed Governor Michael Barr said further policy adjustments are likely needed to return inflation to the 2% target in a timely fashion.
- Boston Fed President Susan Collins supported last week's quarter-point rate hike, writing that a somewhat more restrictive federal funds rate will help ensure inflation durably returns to target.
- Collins sees an increased likelihood that inflation remains notably above 2%, citing upside risks to inflation and stronger labor market conditions.
- Markets are split on another Fed hike in October, with 53.1% expecting a 25-basis-point increase according to CME Group's FedWatch tool.
- ECB executive board member Philip Lane said a second wave of rising energy prices will keep inflation higher for longer, forecasting upward pressure on food, energy, and goods.
Quotes
“further policy adjustments are likely to be needed”
“I now see an increased likelihood of future scenarios in which inflation remains notably above 2 percent”
“upward pressure on food, energy more broadly – including electricity – and goods in general”