Federal Reserve Bank of Kansas City President Jeffrey Schmid said on Thursday that current interest rates are not restraining economic activity, while warning that inflation remains persistent and may require additional policy tightening.
Speaking at the Kansas City Fed’s annual research conference in Jackson Hole, Wyoming, Schmid noted that inflation remains "still stubborn and it's still sticky" and that the central bank must continue efforts to reach its 2% target. He emphasized that the Fed still lacks sufficient data to make informed policy decisions, particularly as an energy shock begins to filter into broader economic indicators.
Schmid’s remarks suggest a potential shift toward further rate hikes, despite his assessment that current policy settings are not yet restrictive. He also indicated that balance sheet adjustments would take time, and suggested the possibility of reducing the number of Federal Reserve policy meetings in the future.
CNBC carried the interview, which was published on Aug. 27, 2026.
