Fed Officials Keep Rate Hike on Table Amid Stubborn Inflation

US Federal Reserve officials are keeping rate hike options open despite concerns about inflation, which remains stubbornly high. Kansas City Fed President Jeffrey Schmid, Cleveland Fed President Beth Hammack, and Chicago Fed President Austan Goolsbee all expressed concerns about inflation at the Jackson Hole conference.

The Personal Consumption Expenditures Price Index, the Fed's preferred inflation gauge, rose 3.7% in the 12 months through July, well above the central bank's 2% target. Schmid questioned whether the current policy stance is doing enough to restrain the economy and hinted at a possible rate hike.

Hammack was more direct about the need for action, stating that now is the time to act against inflation. She also warned about persistent price pressures threatening the central bank's credibility. Goolsbee expressed concerns about inflation regaining momentum and the risk of households becoming accustomed to above-target prices.