Federal Reserve officials warned Thursday that US inflation remains too high, keeping the possibility of further rate hikes in focus as policymakers gathered for the annual Jackson Hole symposium.
Kansas City Fed President Jeffrey Schmid said inflation remains “stubborn” and “sticky,” adding that the current federal funds rate of 3.50% to 3.75% does not appear restrictive enough to bring price pressures back toward the Fed’s 2% target.
Schmid, who has recently supported tighter monetary policy, said he needs more information before deciding whether to back a rate increase at the Fed’s Sept. 15 to 16 meeting.
Cleveland Fed President Beth Hammack also reiterated concerns about inflation, saying she believes “now is the time to act.” Hammack was one of three officials who dissented at the Fed’s July meeting in favor of raising rates.
She warned that persistently elevated inflation could begin changing consumer and business expectations, potentially making price pressures harder to contain.
