Jeffrey Schmid said the Fed’s 3.50%-3.75% policy rate does not appear restrictive, arguing inflation remains “stubborn” and “sticky” as officials gathered at Jackson Hole.
Austan Goolsbee said his biggest near-term fear is that inflation is still not under control, though he added the latest three-month inflation trend “doesn’t look terrible.”
Energy costs linked to the war in Iran and swings in Trump administration tariffs are adding pressure on households and risk entrenching expectations that above-target inflation will persist.
Schmid stopped short of backing a September 15-16 rate hike, saying he needs more evidence on demand, while Goolsbee said rates could fall over time if data show inflation returning to 2%.
The remarks extend a hawkish tone at Jackson Hole after Cleveland Fed President Beth Hammack earlier called for an immediate rate increase over 3% annualized inflation.