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Economic Club of MinnesotaAuthor: Economic Club of Minnesota
The Economic Club of Minnesota (ECOM) provides a high-profile, non-partisan platform for national and international leaders in business, government and public policy to present their ideas on how Minnesota can better compete in the global economy and how America can most effectively provide world leadership on economic and strategic issues. Language: en Genres: Business News, News, Politics Contact email: Get it Feed URL: Get it iTunes ID: Get it |
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Gov. Michael S. Barr
Friday, 17 October, 2025
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 engaged with the students in the audience and discussed his journey and important mentors he relied on to advance in his career.
