Fed Official Calls Inflation Sticky, Questions Policy Restrictiveness
· Business · CNBC, Bloomberg
Kansas City Federal Reserve President Jeffrey Schmid stated on Thursday that inflation remains stubborn and sticky, though he stopped short of committing to an interest rate hike. Speaking at a symposium in Jackson Hole, Wyoming, Schmid questioned whether the current target rate of 3.5%-3.75% is truly restrictive on the economy. He noted that while core prices rose 3.3% annually, he requires more information on demand-side drivers before supporting any policy changes. Additionally, Schmid expressed openness to a proposal by Chairman Kevin Warsh to reduce the number of annual FOMC meetings from eight to six.
Why it matters
The Fed's stance on interest rates directly influences borrowing costs, mortgage rates, and investment sentiment in the US and global markets.
Read the original report — CNBC
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