Schmid Backs Rate Hike Citing Broader Inflationary Pressures

Federal Reserve Bank of Kansas City President Jeff Schmid has expressed his support for the recent interest-rate hike, citing high inflation as a pressing concern. According to Schmid, inflation is not solely driven by rising oil prices but also affects a 'broad range of goods and services'.

Schmid emphasized that inflation excluding energy has been 'running hot,' exceeding the Federal Reserve's price stability mandate. This perspective suggests that the rate hike was necessary to address the broader inflationary pressures facing the economy.