Fed Officials Warn Current Rate May Not Be Enough to Tame Inflation

The Federal Reserve's current federal funds rate may not be doing what it seems to be doing. Three Fed officials, Kansas City Fed President Jeffrey Schmid, Chicago Fed President Austan Goolsbee, and Cleveland Fed President Beth Hammack, shared their concerns about inflation at the Kansas City Fed's Economic Policy Symposium on Thursday.

According to Schmid, 'What are we restricting currently with the rate policy that we're at today?' He believes inflation remains stubborn and sticky, and more needs to be done. Goolsbee also expressed concern, saying his biggest fear is that inflation isn't under control due to rising energy costs and trade uncertainty.

Hammack was the most direct of the three, stating 'I don't see any restriction in policy when I look at financial conditions.' She believes now is the time to act and that above-target inflation has been a problem for more than five years.