Kansas City Fed's Schmid says inflation 'stubborn' and 'sticky,' policy rate not restrictive

The Kansas City Fed's Jeffrey Schmid has stated that inflation remains "stubborn" and "sticky." This comes ahead of the Jackson Hole symposium, where Federal Reserve officials typically discuss monetary policy. Schmid's comments signal a shift in tone from the Fed, which had previously indicated that rate hikes might be paused. The Fed official's remarks have raised the possibility of further rate increases, as he asserted that current policy rates are not restrictive enough to curb inflation.

Schmid's statements have been covered by several outlets, including Bloomberg, CNBC, and qz.com. The remarks come as traders and economists await the Jackson Hole symposium, where further insights into the Fed's monetary policy stance are expected. The symposium has not yet begun, but Schmid's comments have already sparked discussions about the potential for rate hikes.

The reporting does not yet specify how soon rate hikes might occur, or how high rates might go. The Fed's official stance on monetary policy will likely be clarified during the Jackson Hole symposium. Additionally, the specific economic indicators that Schmid is referencing when describing inflation as "stubborn" and "sticky" have not been detailed.