KC Fed official: inflation still too hot, policy too loose ahead of Jackson Hole
Kansas City Fed President Jeff Schmid says inflation remains too hot and the Fed’s policy rate is too accommodative, arguing the central bank hasn’t achieved its 2% mandate and that more action could be warranted. He cites energy and broad demand as drivers, notes July’s PCE inflation core at 3.3% (0.2% month over month), and says the question is whether policy is too accommodative or restrictive. Although not a voting member this year, he would have sided with inflation-focused dissents at the July meetings and signals openness to different rate-paths (including a possible 25 or 50 basis-point move) depending on incoming data. He also highlights Fed data and communication initiatives, the balance-sheet review, and potential changes in meeting frequency as part of ongoing reforms, while downplaying tariff impacts and stressing the need for better real-time data beyond the PCE.}{
