The Fed governor Michael Barr expects the central bank will need to raise interest rates further to tamp down inflation, he said today.

Before last week's quarter-point rate hike, "we were out of position, and we made an adjustment in the right direction," Barr said in a speech in Chicago this morning. "In my base case, further policy adjustments are likely to be needed to ensure inflation comes down to target in a timely fashion."

In the forward-looking dot plot published alongside last week's decision, 16 of 18 officials said anonymously that they are likely to back at least one additional rate increase across the Fed's two remaining 2026 meetings. Four of those officials foresaw two increases. Fed Chairman Kevin Warsh didn't submit projections.

Traders' bets in futures markets show a tossup on whether rates will rise again at the Fed's next meeting in late October, but strong confidence that at least one hike is on the way before the end of the year.