Interest rates are probably at or close to a sufficiently restrictive level

Federal Reserve Vice Chairman for Supervision Michael Barr has said the U.S. central bank is “likely at or very close” to an interest rate level that is restrictive enough. He stated this in a speech during an event on Monday. Barr’s comment is thus consistent with Chairman Jerome Powell’s statements that the Fed may proceed cautiously with further increases. Barr said the bigger question is how long interest rates will have to be kept high, adding that the full effects of previous increases on the economy are yet to be seen in the coming months.