Fed Officials Sound Alarm on Persistent Inflation Concerns

At the annual Jackson Hole economic symposium in Wyoming, two Federal Reserve officials expressed concerns about inflation. Kansas City Fed President Jeffrey Schmid said that inflation remains 'stubborn and sticky,' and that the central bank's current policy rate of 3.50%-3.75% does not appear to be restrictive.

He noted that monetary policy is not working to counter current price pressures, suggesting that he would still favor raising rates to bring inflation back down to the Fed's 2% target. However, when asked about a potential rate hike at the upcoming September 15-16 policy meeting, Schmid said 'I think we need a little bit more information.'

Chicago Fed President Austan Goolsbee also expressed concerns about inflation, describing the environment as 'partly disturbing.' He noted that rises in energy costs and constant oscillation in tariffs are hitting households at a time of unacceptably high inflation.