Federal Reserve vice chair for supervision Michael Barr acknowledged on Monday that the U.S. inflation readings in the first quarter of this year were disappointing and did not provide the confidence needed to ease monetary policy by reducing the interest rates. "This means that we will need to allow our restrictive policy some further time to continue to do its work," the official added.
Barr also said that he thinks the Fed is in a good position to hold steady and closely watch how conditions evolve.
In addition, he noted that he remains vigilant to the risks to achieving both components of the Fed's mandate (to achieve maximum employment and price stability). "I believe that the current approach is a prudent way to manage those risks," Barr said.