Kansas City Fed President Schmid Supports Rate Hike Citing Broad Inflation Above 3%

• Kansas City Fed President Schmid backed recent rate hike.
• Cited inflation trending above 3% and broadening beyond energy.
• Policy aims to return inflation to the 2% target.

Kansas City Federal Reserve President Jeffrey Schmid stated on Friday that he supported the recent interest rate increase, viewing it as a crucial step toward achieving the Fed’s 2% inflation target. Schmid highlighted that recent data indicate inflation is trending above 3% and has broadened significantly across a wide range of goods and services, extending beyond just energy prices. He noted that this elevated and widespread price growth suggests an imbalance between supply and demand, even as the broader economy continues to perform well. Schmid’s remarks underscore a persistent hawkish stance within the central bank regarding the ongoing fight against inflation.