Kansas City Federal Reserve President Jeffrey Schmid said the labour market remains in a good place but warned on Tuesday that the battle against inflation has a way to go. He described inflation as frustrating and said it must be fixed to protect the central bank’s credibility.
Inflation remains a primary concern
Schmid highlighted that inflation continues to pose significant challenges, stressing that credibility is at stake in fighting inflation. He said the US central bank still has a path ahead to bring prices down to the Federal Reserve’s 2 percent inflation target.
He also expressed ongoing worries about the high cost of living, signalling that price stability remains a key priority for the Federal Reserve’s monetary policy decisions.
Labour market stable but inflation pressure persists
The Federal Reserve shapes monetary policy with the dual mandate of price stability and fostering full employment. Schmid remarked that the labour market remains in a good place, consistent with the central bank’s goals.
Source: Federal Reserve
