Schmid Hesitant on Rate Increase Despite Stubborn US Inflation

Kansas City Federal Reserve Bank President Jeffrey Schmid believes US inflation remains too high and persistent. In an interview at the central bank's annual symposium in Jackson Hole, Wyoming, he stated that inflation has proven 'stubborn' and persistent.

Schmid noted that the core PCE price index rose 3.3% year-on-year, exceeding the Federal Reserve's 2% target. The US economy grew by 1.5% in the second quarter, while the unemployment rate stood at 4.1%.

The official is unsure whether the current interest rate range of 3.5-3.75% is restrictive for the economy. Schmid seeks more information on how demand affects economic growth and inflation before deciding on a possible rate increase.