Fed Governor Christopher Waller and Richmond Fed President Thomas Barkin both said Friday that additional rate increases are necessary to bring inflation down to the central bank’s 2% target. “We’re seeing policy rates having some effects on parts of the economy.
” Powell said in his news conference following the Fed’s decision on Wednesday that he’s optimistic about inflation’s descent, adding that lower rent prices will be a source of disinflation in the future. Shelter costs make up more than 40% of the Consumer Price Index’s core measure. “I think any forecast that people are making right now about inflation coming down this year will contain a big dose — this year or next year — will contain a good amount of disinflation from that source,” he said.