09:13 AM EDT, 05/20/2024 (MT Newswires) -- Recent data show that inflation is still a distance away from the 2% target and suggests that holding interest rate at a restrictive level for a time is needed, Federal Reserve Vice Chair for Supervision Michael Barr said Monday.

"As noted in the FOMC's statement following our meeting earlier this month, inflation readings in the first quarter of this year were disappointing," Barr said at the Atlanta Fed's Central Banking in the Post-Pandemic Financial System 28th Annual Financial Markets Conference. "These results did not provide me with the increased confidence that I was hoping to find to support easing monetary policy by reducing the federal funds rate. This means that we will need to allow our restrictive policy some further time to continue to do its work."

Other Fed officials have recently said that while further rate increases are unlikely, the Federal Open Market Committee is also not in rush to lower rates until there is further evidence that inflation has on a downward path toward the 2% goal.

"I think we are in a good position to hold steady and closely watch how conditions evolve," Barr said. "I remain vigilant to the risks to achieving both components of our mandate. I believe that the current approach is a prudent way to manage those risks."