Gov. Michael S. Barr

Gov. Michael S. Barr

From Economic Club of Minnesota by Economic Club of Minnesota

October 17, 2025 · 57 min

About this episode

Federal Reserve Governor Michael S. Barr discusses the U.S. economy, inflation challenges, and monetary policy at the Economic Club of Minnesota.

On October 9, 2025, Federal Reserve Governor Michael S. Barr took the stage at the Economic Club of Minnesota's luncheon, to discuss the U.S. economy amid rising inflation and policy challenges. In his speech, "The Economic Outlook and Monetary Policy," Barr highlighted how recent tariffs have driven inflation up, with the PCE index hitting 2.7% in August and core PCE nearing 3%. These pressures, he warned, could push inflation above 3% by year-end, complicating the Fed's 2% target. Barr gave a personal nod to his Minnesota roots by sharing that his grandmother's family ran a clothing store in Eveleth during the 1906 iron ore boom. In a candid Q&A with Minneapolis Fed President Neel Kashkari, Barr addressed the Fed's delicate balancing act between curbing inflation and supporting a softening labor market. With unemployment creeping up and consumer spending showing a split between robust high-income households and struggling lower-wage workers, he urged caution on further rate cuts after September's 25-basis-point reduction. The looming threat of a government shutdown added to the uncertainty, though Barr noted its economic impact remains unclear. Governor Barr was especially…

People in this episode

Host: Neel Kashkari

Guest: Michael S. Barr

Topics covered

  • U.S. economy
  • inflation
  • monetary policy
  • labor market
  • government shutdown

Keywords

  • PCE index
  • tariffs
  • rate cuts
  • unemployment
  • consumer spending

Mentioned in this episode

Books & works: The Economic Outlook and Monetary Policy

Places: U.S., Minnesota, Eveleth

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