Fed’s Schmid supports rate hike as inflation broadens beyond 3%
On Friday, Kansas City Federal Reserve (Fed) President Jeffrey Schmid said he supported the rate hike, as “recent data suggest inflation trending above 3%.” Schmid added that tightening policy is a step toward achieving the Fed’s 2% goal, that inflation has broadened across a set of goods and servic
On Friday, Kansas City Federal Reserve President Jeffrey Schmid voiced support for a rate hike, stating that recent data indicated inflation had surpassed the 3% mark. Schmid explained that tightening policy is a means to attain the Fed's 2% inflation target, noting that inflation has spread across various goods and services. He emphasized that the robust economy is not solely driven by energy prices, with prices increasing across a broad spectrum of goods and services.
Inflation, a sign of supply and demand imbalance, is a concern beyond energy. Despite this, Schmid affirmed that the economy is performing well overall, with the labor market appearing balanced and economic growth solid.
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