Fed Officials Sound Alarm on Stubborn US Inflation

At the annual Jackson Hole economic symposium in Wyoming, officials from the Federal Reserve expressed ongoing concerns about US inflation. According to Kansas City Fed President Jeffrey Schmid, inflation is 'still stubborn and it's still sticky' and must be addressed with a return to the central bank's 2% target.

Schmid acknowledged that the current policy rate, set in the 3.50%-3.75% range at the July meeting, may not be restrictive enough, citing his own earlier support for raising rates to combat inflation. However, he also noted a need for more information on the demand side of growth and inflation before making any decisions.

Cleveland Fed President Beth Hammack echoed these concerns, emphasizing her willingness to act on inflation despite ongoing economic growth. Hammack, one of three officials who dissented in favor of rate hikes last month, expressed fears about inflation's impact on central bank credibility as it has been above target for over five years.

Chicago Fed President Austan Goolsbee shared similar concerns, stating that his biggest fear is 'inflation not under control.' He noted the importance of monitoring data and warned against assuming a stable economy. Boston Fed President Susan Collins reported mixed inflation data but maintained a focus on gradual disinflation in her monetary policy scenario.