Kansas City Fed’s Schmid says inflation too hot, rates too accommodative on eve of Jackson Hole

Live updates

1. 18d ago

   Fed Officials Warn of Inflation as Jackson Hole Conference Begins

   Three Federal Reserve officials have warned about persistent inflation as the central bank's annual Jackson Hole conference starts. Kansas City Fed official Jeffrey Schmid argues that current interest rates are accommodative rather than restrictive, describing inflation as sticky and stubborn. These warnings highlight internal divisions within the Fed regarding whether further rate hikes are necessary to combat price pressures. Attention now shifts to Federal Reserve Chair Kevin Warsh, whose upcoming speech is expected to be one of the most closely watched in recent years.

   Why it matters

   The Jackson Hole symposium serves as a primary venue for Fed officials to signal future monetary policy. Current disagreements center on whether existing rates are sufficient to curb inflation or if further tightening is required. AI-driven energy demand is cited as a new pressure that complicates the Fed's toolkit.

   What is confirmed

   • Three Federal Reserve officials have warned about inflation as the Jackson Hole conference begins.
   • Jeffrey Schmid stated that current Fed rate policy may not be restrictive enough.
   • Kevin Warsh is the current Federal Reserve Chair.
   • Fed officials remain divided on inflation ahead of a speech by Kevin Warsh.

   Still unconfirmed

   • AI-driven energy demand is adding a force that the Fed has no clean tool to fight.

   What to watch next

   • The contents of Chair Kevin Warsh's speech on Friday.
   • Further statements from Fed officials during the Jackson Hole conclave regarding rate hikes.
   Sources used for this update (6)

   1. Reuters — As Jackson Hole conference kicks off, three Fed officials warn about inflation
   2. qz.com — Fed officials warn on inflation at Jackson Hole 2026
   3. Bloomberg — Fed Officials Remain Divided on Inflation Ahead of Warsh Speech
   4. mpamag.com — Fed rate policy may not be restrictive enough, Schmid warns
   5. apnews.com — All eyes on Fed Chair Warsh during the central bank’s annual conclave in Jackson Hole
   6. 247wallst.com — The Fed Just Admitted Inflation Is Still Stubborn and Still Sticky. Savers Should Be Worried.
   confidence 90%
2. 19d ago

   Kansas City Fed's Schmid warns inflation remains sticky as Jackson Hole begins

   Kansas City Fed official Jeffrey Schmid argues that current interest rates are too accommodative and not in restrictive territory. Schmid describes inflation as stubborn and sticky, suggesting that rates may need to rise to combat these pressures. These hawkish signals emerge as Federal Reserve officials gather for the Jackson Hole symposium, where internal divisions exist regarding whether inflation requires further rate hikes. Other officials, including Hammack, have also indicated that now is the time to act on raising interest rates.

   Why it matters

   The Federal Reserve uses interest rate adjustments to control inflation. The annual Jackson Hole symposium serves as a venue for officials to signal future policy shifts. Disagreement among members on whether current rates are restrictive enough creates uncertainty for market expectations.

   What is confirmed

   • Jeffrey Schmid stated that inflation is stubborn and sticky.
   • Schmid described current policy rates as not restrictive.
   • Schmid warned that interest rates may need to rise.

   Still unconfirmed

   • Federal Reserve officials are divided over whether inflation requires another rate hike.

   What to watch next

   • Official policy statements from the Jackson Hole symposium
   • Upcoming Federal Open Market Committee interest rate decisions
   Sources used for this update (8)

   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. CNBC — Fed's Hammack says 'now is the time to act' on raising interest rates
   7. finance.yahoo.com — Jackson Hole Fed summit live: Kevin Warsh's keynote speech comes at a pivotal moment for the Federal Reserve
   8. www.thewealthadvisor.com — Jeffrey Schmid Says Fed Rates Aren’t Restrictive Enough. Jackson Hole Just Got More Complicated.
   confidence 90%