Fed Officials Signal 'Time to Act' as Inflation Remains Stubborn

The annual Jackson Hole economic policy symposium kicked off its first day with hawkish statements from Federal Reserve officials, signaling 'time to act' on inflation. Jeffrey Schmid, president of the Federal Reserve Bank of Kansas City, said inflation remains stubborn and is not coming down easily.

He added that the current benchmark rate of 3.50%, 3.75% is not sufficiently restrictive for the economy, stating 'I'm not sure what the current rate policy is actually constraining.'

Beth Hammack, president of the Federal Reserve Bank of Cleveland, used more direct language, saying 'now is the time to act' on inflation.

Austan Goolsbee, president of the Federal Reserve Bank of Chicago, cited rising energy prices and political pressure from President Trump as factors increasing cost burdens on households.