Fed Officials Split on Urgency of Action as Jackson Hole Kicks Off
Federal Reserve officials gathered at Jackson Hole, Wyoming ahead of Chair Kevin Warsh's keynote address to discuss their views on inflation. Cleveland Fed President Beth Hammack was the most direct in her call to action, repeating her argument that current financial conditions show no sign of restriction and urging immediate action.
Kansas City Fed President Jeffrey Schmid struck a more cautious note, describing inflation as 'stubborn and sticky' but questioning whether the Fed's current policy rate is doing any real work to restrain the economy. He wants a clearer picture of the demand side forces driving growth and inflation before taking a position on a September hike.
Chicago Fed President Austan Goolsbee offered a more anxious assessment, warning that 'everybody should be on edge' given how difficult a renewed inflationary impulse would be to reverse. He noted the recent three-month trend 'doesn't look terrible' and left the door open to rate cuts eventually.