Kansas City Fed President Schmid: Current Rates Not Restrictive, Inflation Remains Stubborn
- Schmid: Rates not restrictive; inflation stubborn above 2%.
- Energy shock spreading; Fed needs more info before meeting.
- Schmid reaffirms 2% target, hawkish stance persists.
Kansas City Federal Reserve President Jeff Schmid stated at the Jackson Hole symposium that the central bank’s current interest rate settings are not restraining the US economy. He emphasized that inflation remains “stubborn and sticky,” continuing to run above the Fed’s 2% target. Schmid, known for his hawkish stance, indicated he would have likely supported a rate increase at the July meeting, highlighting the ongoing challenge for the Federal Open Market Committee to bring inflation under control. His remarks suggest a persistent need for vigilance in monetary policy.
Kansas City Fed President Jeffrey Schmid reiterated that inflation remains stubborn and that current monetary policy’s restrictiveness is unclear. He further warned that an energy shock is now spreading into the broader economy. Schmid also indicated the Federal Reserve requires more information before its upcoming meeting, while reaffirming the commitment to bring inflation back to 2%.