Inflation Running Too Hot Even Without Oil, Fed's Schmid Says
By Dean Seal
The economy's inflation problem is being driven by more than just high oil prices, Kansas City Fed President Jeff Schmid said.
Schmid reiterated points he has made all summer about inflation running too hot even when excluding energy prices, sparking the need for fiscal tightening. He spoke at the Independent Community Bankers of Colorado Annual Convention on Friday.
"A broad range of goods and services are showing price growth inconsistent with our price stability target," Schmid said.
Schmid's comments are among the first from a Federal Reserve official since the Federal Open Market Committee voted unanimously on Wednesday to raise interest rates for the first time in three years.
While Schmid isn't a voting member on the committee this year, he said he supported the rate hike, calling it a step in the right direction. Inflation has run above the Fed's 2% target for more than five years, and the most recent readings suggest the pace is still trending above 3%, Schmid said.
Because the rest of the economy is performing well, with a balanced labor market, persistent consumer spending and strong business investment, inflation is Schmid's primary concern, he added.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
September 18, 2026 12:32 ET (16:32 GMT)
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