Fed Officials Sound Alarm on Persistent US Inflation Concerns

At the annual Jackson Hole symposium in Wyoming, US Federal Reserve officials expressed ongoing concerns about inflation. Kansas City Fed President Jeffrey Schmid stated that the current policy rate of 3.5-3.75% does not appear to be restrictive and that he is still favoring a path to raise rates to help bring inflation back down to the 2% target.

Cleveland Fed President Beth Hammack was similarly anxious about inflation, reiterating her willingness to act to bring price pressures in line. She noted that inflation has been above target for more than five years and that monetary policy is not doing anything to restrain the economy and lower price pressures.

Chicago Fed President Austan Goolsbee also shared his concerns about inflation, stating that 'everybody should be on edge' due to its persistence. He warned that if inflation starts going up again, it's very hard to get rid of it.