Kansas City Federal Reserve President Jeffrey Schmid spoke at an economic forum in Oklahoma, noting that U.S. inflation has risen to approximately 3.5%, above the Fed’s 2% target and has stayed above target for several years.
Schmid posed the question of whether the Fed should remain patient or begin raising the policy rate, suggesting possible one‑ or two‑quarter‑point hikes to “tamp this thing down.”
He indicated that the decision hinges on whether the current inflation level is temporary or requires decisive action, implying that a rate increase could be implemented in the near term.
