Federal Reserve Watch for Sept. 29: Barr Repeats That Further Rate Increases May Be Needed

02:23 PM EDT, 09/29/2026 (MT Newswires) -- Fed Governor Michael Barr (voter) repeated that further rate increases are likely to ensure that inflation moves down toward the 2% target, noting that risks to inflation have increased while risks to the labor market have decreased. New York Fed President John Williams (voter) said that it is "imperative" for the FOMC to bring inflation down toward its 2% target but said that after the rate increase at the last FOMC meeting, the Committee now has time to receive more information before acting again. He said that his expectation is for one more rate increase this year. St. Louis Fed President Alberto Musalem (nonvoter) said that clear communication on the part of the Fed promotes better outcomes but did not suggest that the FOMC needs to give forward guidance for its exact rate path. Rather the FOMC should communicate "the framework for how and why policy is determined." Recent comments of note: (Sept. 28) Fed Governor Lisa Cook (voter) said that she expects further upward inflation pressure from the AI buildout, higher oil prices and supply chain disruptions in the Middle East, while the labor market is "well positioned to handle an increase in rates." (Sept. 24) New York Fed President John Williams (voter) said that it is "reasonable" to expect that the FOMC will need to raise rates further this year, adding that the decision would be based on incoming data rather than mapped out plan. (Sept. 24) Philadelphia Fed President Anna Paulson (voter) said that she supported the rate increase at the September FOMC meeting and said that she expects further rate increases may be needed to return inflation to its 2% goal. (Sept. 23) Fed Governor Michael Barr (voter) said that he supported the rate increase at the most recent FOMC meeting, adding that further increases will likely to be needed to help bring down inflation and restore price stability. (Sept. 22) Richmond Fed President Tom Barkin (nonvoter) said inflation risks are a greater concern at the moment for the FOMC than growth and employment risk, resulting in the 25-basis point rate increase that the most recent FOMC meeting, but did not forecast the rate path going forward. (Sept. 21) Chicago Fed President Austan Goolsbee (nonvoter) said that strong demand could also be driving inflation and that the Fed's job of lower the pace of price growth back down to the 2% goal may necessitate further rate increases that could negatively impact employment and economic growth.