Kansas City Fed’s Schmid Emphasizes Unfinished Work on Inflation, Citing Credibility at Stake

• Kansas City Fed President Jeffrey Schmid stated the Fed has “work to do” on inflation.
• He emphasized the Fed’s credibility is at stake in reaching the 2% inflation target.
• The labor market remains strong, allowing focus on price stability.

Kansas City Federal Reserve President Jeffrey Schmid recently stated that the central bank has not yet fulfilled its mandate on inflation, emphasizing that there is still “work to do” to bring prices down to the 2% target. Speaking at the Richmond Fed’s Investing in Rural America conference, Schmid highlighted that the Fed’s credibility is at stake in this ongoing fight against high costs of living. He noted that the labor market remains in a good place, providing the Federal Reserve with room to maintain its focus on restoring price stability. Schmid, who supported the September rate hike, underscored inflation as the primary priority, despite a broadly stable economy.