Fed's Schmid: Inflation remains elevated, complacency is not an option

Kansas City Fed President Voices Concern Over Persistent Inflation

Jeffrey Schmid, President of the Kansas City Federal Reserve, reiterated his stance against additional interest rate reductions on Tuesday. He emphasized that the U.S. job market remains stable, while inflation continues to run higher than desired levels.

Speaking to the Metro Denver Executive Club, Schmid pointed out that inflation has exceeded the Federal Reserve’s target for almost five years. He highlighted that strong demand is outstripping supply, causing service prices to rise at a pace incompatible with the Fed’s 2% inflation objective. “There is no room for complacency,” Schmid warned.

He did not comment on the potential economic effects of ongoing international conflicts.