Jeffrey Schmid, president of the Federal Reserve Bank of Kansas City, said from Jackson Hole that inflation remains stubborn and sticky, requiring continued efforts. The current policy rate of 3.5% to 3.75% is not restrictive enough to slow the economy, according to him. Core inflation reached 3.3% year-over-year in July, well above the Fed’s 2% target, while GDP growth stood at 1.5% in the second quarter and unemployment at 4.1%. Schmid, who does not have a vote on the FOMC this year, added that he needs more information before deciding on a potential rate increase.
Source: Read the original article
