A Federal Reserve governor stated that maintaining interest rates unchanged amid increased uncertainty is a wise move.

Michael Barr, a member of the Federal Reserve Board, said that as conflicts in the Middle East and other factors complicate the path to the 2% inflation target, decision-makers have the conditions to maintain interest rates stability. Barr emphasized that the impact of tariffs on inflation may continue beyond this year; at the same time, he pointed out that non-shelter services inflation and core inflation are both at high levels. "Given that developments in the Middle East could pose significant uncertainty for our economy, as well as other factors I mentioned earlier, taking the time to assess the situation is a wise move," Barr said in a speech at the Brookings Institution in Washington on Thursday. "Our current policy stance puts us in a good position to maintain policy unchanged while evaluating new data, economic prospects, and risk balances."