Kansas City Fed President Jeff Schmid warns inflation remains too high and calls for tighter monetary policy to achieve the 2% target.
Federal Reserve Bank of Kansas City President Jeff Schmid stated that current monetary policy is not restrictive enough to bring inflation back to the 2% target. He described inflation as ‘too high’ and ‘worrisome,’ emphasizing the need for tighter policy despite resilient economic growth and a balanced labor market.
Schmid highlighted that recent inflation figures are encouraging but too preliminary to confirm a sustained easing trend. He also pointed to AI-driven investment as a potential inflationary pressure, warning against overlooking supply shocks. The PCE price gauge remains his preferred inflation measure.
The US Dollar Index (DXY) showed minimal movement, trading 0.02% lower near 99.85 following his remarks. Schmid’s comments were rated marginally hawkish, reinforcing the Fed’s anti-inflation stance.