Anabelle Colaco
30 Aug 2026, 13:26 GMT+10
JACKSON HOLE, Wyoming: Three Federal Reserve officials warned on Thursday that inflation remains a concern, with some signaling that further interest-rate increases may still be needed as central bankers gathered for the Kansas City Fed's annual Jackson Hole symposium.
Kansas City Fed President Jeffrey Schmid said inflation was "still stubborn and it's still sticky and we've got to continue to find ways to break through" and return it to the Fed's 2% target.
He said the central bank's current policy rate, which was left in the 3.50%-3.75% range at its July 28-29 meeting, did not appear restrictive.
"I don't know what we're restricting currently with the rate policy that we're at today," Schmid said.
Schmid, who recently favored raising rates, said he needed more information before deciding whether to support an increase at the Fed's September 15-16 meeting.
"I think we need a little bit more information," he said. "What I'm trying to figure out is the demand side of what's driving both growth and inflation."
Cleveland Fed President Beth Hammack also reiterated her willingness to act against inflation.
"I don't want to prejudge anything," Hammack said, "but I believe now is the time to act."
Hammack, one of three Fed officials who dissented at last month's meeting in favor of a rate hike, said inflation had been above target for more than five years and that monetary policy was not currently restraining the economy enough to lower price pressures.
She also warned that concerns about inflation were becoming more common among local contacts.
"We're starting to get some of that inflationary mindset" embedding itself in the economy, Hammack said. "I don't think we're there yet, but that's what I want to make sure we avoid."
In a later Fox Business interview, Hammack said she expected inflation to end the year around 3% and saw only limited progress next year.
"My forecast is that inflation is going to end this year around 3% and I think we're not going to make significant progress next year. I think we'll get to maybe mid-twos at best," she said.
Chicago Fed President Austan Goolsbee said his biggest near-term concern remained inflation getting out of control.
"Everybody should be on edge," Goolsbee said. "We hear a lot about affordability and we better be mindful because if inflation starts going up again, it's very hard to get rid of it."
He said higher energy costs linked to the war in Iran and repeated changes in Trump administration tariffs were adding pressure at a time when inflation remained unacceptably high.
The comments came a day after data showed the Personal Consumption Expenditures Price Index, the Fed's preferred inflation gauge, rose 3.7% in the 12 months through July, unchanged from June but below May's 4.1% increase.
Fed Chairman Kevin Warsh spoke at Jackson Hole on Friday, warning that the Fed might have work to do if inflation remained at elevated levels.
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