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Kansas City Fed chief says inflation fight has more work to do

Jeffrey Schmid said inflation credibility is at stake as the Fed works toward its 2% price goal.

Reported · Written up by our desk · Central Banks

Kansas City Federal Reserve President Jeffrey Schmid said the labor market remains in good shape, but he is still concerned about the high cost of living, calling inflation “frustrating” and saying it must be fixed.

Schmid warned that credibility is at stake in the fight against inflation, adding that the US central bank has more work to do to bring prices to the Fed’s 2% goal, according to FXStreet.

He also reiterated that the Fed has two mandates, price stability and full employment, and that its main tool is adjusting interest rates when inflation runs above target, a move that can affect borrowing costs across the economy.

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