Federal Reserve Vice Chair for Supervision Michael Barr
- FOMC confident’ it is on path to 2% inflation.
- Need to see continued good data before beginning rate cuts.
- Fully support ‘careful’ approach to policy normalization.
- January CPI report a reminder that path to 2% inflation may be bumpy.
- Banking system sound, resilient; pockets of risk include some office commercial real estate.
- No signs of liquidity problems across financial system; monitoring conditions carefully.
- Fed balance sheet rundown operating smoothly, reserves are plentiful.
- ‘Sizable’ overnight reverse repos a ‘buffer’; pleased at steady growth in signups for standing repo facility.
- FOMC plans in-depth discussions of balance sheet issues ‘soon’.
Barr sticking to the established script. On Tuesday Federal Reserve Chair Powell said the January CPI report wasn;t a worry:
