The Federal Reserve Bank of Kansas City’s president, Jeffrey Schmid, said on Thursday that U.S. inflation remains persistent and that current interest rates are not restrictive enough to bring price pressures back to the central bank’s 2% target.
Speaking to CNBC, Schmid stated that inflation continues to be "stubborn and persistent," adding that policymakers must continue seeking ways to address the issue. He emphasized that the current level of interest rates in the United States does not appear to be exerting sufficient restraint on economic activity.
Schmid’s remarks came ahead of the annual Jackson Hole Economic Symposium in Wyoming, a gathering that typically draws significant attention from global financial markets for signals on monetary policy direction. The event, held in the Grand Teton National Park, serves as a key platform for central bankers to discuss economic challenges and policy strategies.
His comments suggest a preference for further tightening, though he did not specify a timeline or the magnitude of potential rate increases. The Federal Reserve has maintained its benchmark interest rate in a range of 5.25% to 5.50% since July 2023, a level Schmid indicated is not currently restrictive to economic growth.
