Fed's Barr: Data to Drive Meeting-by-Meeting Rate Decisions

Bullion Bite
A photo of Federal Reserve Vice Chair for Supervision Michael Barr speaking at a press conference

Federal Reserve Vice Chair for Supervision Michael Barr has emphasized the importance of data in making meeting-by-meeting decisions on interest rates. Speaking on Wednesday, Barr stated that the Fed will be closely monitoring incoming data and financial conditions in order to assess the appropriate rate for each meeting. He also expressed the need for stronger rules on capital and liquidity for banks over $100 billion in size.

Barr's comments come as the US economy continues to recover from the impact of the COVID-19 pandemic. The Fed has kept interest rates at near-zero levels since March 2020, in an effort to support the economy. However, as the recovery gains momentum, there are growing concerns that inflation could become a problem.

The market reaction to Barr's comments has been relatively muted, with the US Dollar Index holding onto modest daily recovery gains at 102.70. The focus now shifts to the Fed's upcoming meeting in April, where investors will be looking for any clues on the central bank's next moves regarding interest rates.

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