Updated
Updated · Bloomberg · Sep 19
Fed's Schmid Backs Rate Hike as Inflation Beyond Energy Runs Hot at 2% Target
Updated
Updated · Bloomberg · Sep 19

Fed's Schmid Backs Rate Hike as Inflation Beyond Energy Runs Hot at 2% Target

3 articles · Updated · Bloomberg · Sep 19

Summary

  • Jeff Schmid said he supported this week’s Federal Reserve rate increase, calling it a necessary step to curb still-high inflation.
  • Broad price pressures drove that view: Schmid said inflation excluding energy has also been running hot, with a wide range of goods and services posting gains inconsistent with the Fed’s price-stability goal.
  • His comments reinforce the case that policymakers see inflation as more entrenched than a temporary oil-price shock, keeping the focus on underlying price trends rather than energy alone.

Insights

If energy prices aren't the real culprit, what hidden economic pressures are secretly forcing the Fed to keep borrowing costs painfully high?
With inflation stubbornly high, could the Fed's latest interest rate hike trigger a massive wave of agricultural bankruptcies across the Midwest?