Fed Gov. Barr is speaking (voting member) and says: Uncertainty about both inflation and jobs warrants a cautious approach to any further interest rate cutPossible that tariffs have only a modest impact on inflation, but there are also risks of persistent inflation and rising inflation expectationsFed’s inflation goal faces significant risks, but also some factors that might mitigate those risksExpects core personal consumption expenditures price index over 3% at end of this yearSkeptical that the Fed can completely look through tariff-driven inflationTwo more years would be a long time for consumers to wait for inflation to return to 2%Low payroll growth could be a sign of worse to come, but sound continued growth and resilience could also lead to stronger hiringRate cut in September was appropriate, current policy rate still modestly restrictiveSince Fed’s September meeting consumer spending has been strong, stronger PCE inflation has been confirmed, and new tariffs announcedModest impact of tariffs on inflation so far likely means period of adjustment will continue longer as firms adaptHard to judge at this point whether federal government shutdown will leave an imprint on overall economyCurrent outlook poses challenges for judging stance of monetary policy and deciding the right path forwardRecent spending data suggest GDP growth remained strong in the third quarterFact that job market balance is coming through slowing supply and hiring suggests vulnerability to shocksBarr comes across as more hawkish (less dovish) than dovish:He clearly prioritizes inflation risks, downplays the case for further immediate easing, and stresses caution.His tone is not aggressively hawkish (he doesn’t call for hikes), but his skepticism about cuts and insistence on watching inflation make him hawkish-leaning neutral. This article was written by Greg Michalowski at investinglive.com.