The post Rates may need to be on hold for some time given above target inflation appeared on BitcoinEthereumNews.com.

Federal Reserve (Fed) Governor Michael Barr said on Tuesday that the central bank may need to keep interest rates steady “for some time” before further cuts are warranted, noting continued inflation above the Fed’s 2% target and the risks posed by the ongoing conflict in the Middle East. Key quotes War has increased risks given high oil prices. Labor market seems to be stabilizing. Rates may need to be on hold “for some time” given above target inflation. If job market stays stable would need to see evidence of sustainable drop in inflation before cutting rates again. Market reaction At the time of writing, the US Dollar Index (DXY) is trading around 99.25, up 0.09% on the day.  Fed FAQs Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback. The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. The FOMC is attended by twelve Fed officials – the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis. In extreme situations, the…

---

Filed under: News - @ March 24, 2026 11:23 pm