Federal Reserve Governor Michael Barr stated that further policy adjustments are likely necessary, citing increased inflation risks and receding labor-market risks. Barr anticipates U.S. economic growth to accelerate from the 2% pace seen in the first half of the year, with AI investment providing an additional boost next year. He cautioned that there is no clear path for inflation to return to the Fed's 2% target, while also warning that AI could cause serious short-term disruptions in the labor market.