Kansas City Fed's Schmid says inflation 'stubborn' and 'sticky,' policy rate not restrictive

Live updates

1. 18d ago

   Fed Officials Warn of Sticky Inflation at Jackson Hole Symposium

   Federal Reserve officials are calling for action against stubborn inflation during the Jackson Hole economic symposium. Kansas City Fed President Jeffrey Schmid described current policy rates as not restrictive, while Chicago Fed President Austan Goolsbee stated that US rates are not historically high. These hawkish positions increase pressure on Fed Chair Kevin Warsh ahead of his first keynote address. Officials warn that inflation remains a key variable, potentially necessitating further rate hikes to stabilize the economy.

   Why it matters

   The Jackson Hole symposium serves as a critical venue for Fed officials to align on monetary policy. The current debate centers on whether existing rates are accommodative or restrictive given persistent inflationary pressures.

   What is confirmed

   • Fed officials warned about sticky inflation at the Jackson Hole symposium.
   • Kevin Warsh is scheduled to speak at the event on August 28.

   Still unconfirmed

   • Current rates are described as accommodative as inflation drifts higher.

   What to watch next

   • The delivery of Kevin Warsh's first keynote address
   • Official Fed policy rate decisions following the symposium
   Sources used for this update (4)

   1. www.businesstimes.com.sg — ‘Everybody should be on edge’: US Fed officials warn on inflation as Jackson Hole symposium opens
   2. en.sedaily.com — Hawks Set Tone Early, Raising Stakes for Warsh at Jackson Hole
   3. finance.yahoo.com — The Fed Just Admitted Inflation Is Still Stubborn and Still Sticky. Savers Should Be Worried.
   4. en.bloomingbit.io — Goolsbee Strikes Hawkish Tone at Jackson Hole, Says US Rates Aren’t Historically High
   confidence 90%
2. 19d ago

   Kansas City Fed's Schmid says inflation 'stubborn' and 'sticky'

   Kansas City Federal Reserve President Jeffrey Schmid stated that US inflation remains "stubborn and sticky," and current policy rates are not restrictive. This suggests that interest rates may need to rise to combat inflation. Schmid's comments come as the Federal Reserve gathers for the Jackson Hole economic symposium.

   Why it matters

   The Federal Reserve has been grappling with inflation concerns, and Schmid's remarks add to the growing hawkish sentiment among Fed officials. The current inflation rate is above the Fed's 2% target, and policymakers are under pressure to take action. The Jackson Hole symposium is a key event for central bankers to discuss monetary policy and the economic outlook.

   What is confirmed

   • Inflation remains "stubborn and sticky," according to Kansas City Fed President Jeffrey Schmid.
   • Current policy rates are not restrictive, says Schmid.
   • Schmid warns that interest rates may need to rise to combat inflation.

   Still unconfirmed

   • The risk of further rate hikes has been raised following Schmid's comments.

   What to watch next

   • Federal Reserve's decision on interest rates at the next FOMC meeting
   • Inflation data releases in the coming months to gauge the effectiveness of current monetary policy
   • Keynote speeches from other Fed officials at the Jackson Hole symposium for further insights on monetary policy
   Sources used for this update (9)

   1. CNBC — Kansas City Fed's Schmid says inflation 'stubborn' and 'sticky,' policy rate not restrictive
   2. Bloomberg.com — Fed’s Schmid Says Policy Isn’t in Restrictive Territory
   3. qz.com — Kansas City Fed's Jeffrey Schmid warns rates may need to rise
   4. Yahoo Finance — Kansas City Fed’s Schmid says inflation too hot, rates too accommodative on eve of Jackson Hole
   5. Moomoo — The Jackson Hole symposium has not yet begun, but hawkish signals from the Federal Reserve have already emerged! Schmid stated bluntly that interest rates are still not tight enough, raising the risk of further rate hikes back onto the trading agenda.
   6. biz.heraldcorp.com — Kansas City Fed chief says current rates not restrictive, inflation still 'sticky'
   7. finance.yahoo.com — Kansas City Fed's Jeffrey Schmid warns rates may need to rise
   8. www.foxbusiness.com — Kansas City Fed president says economy's 'performing' but stresses hitting 2% mandate
   9. kelo.com — As Jackson Hole conference kicks off, two Fed officials warn about inflation
   confidence 85%