elroyalenodepositbonus2022| Federal Reserve official Barr reiterates the need to keep interest rates high for longer

The Federal Reserve is responsible for regulatory affairselroyalenodepositbonus2022Michael Barr, vice chairman of the company, reiterated that in order for inflation to cool completely, policymakers will need to keep interest rates stable longer than previously thought.

"We need to sit tight for longer than we thought before, and I think we're in good shape right now to do that," Barr said Tuesday.

He said monetary policy is restrictive and is affecting the economy.

"We need to see more evidence of continued progress in inflation so that we can consider adjusting policy rates," Barr said.

Barr said interest rate risk will continue to be a problem for some banks and requires prudent management.

Barr reiterated previous comments about proposed bank capital rules, noting that the plan would be subject to substantial and significant changes. The plan was first proposed last year.