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.
Get a daily dose of Milwaukee Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Milwaukee Sun.
More InformationDUBAI, U.A.E.: Six months after the airstrikes that triggered the war and pushed the badly injured Mojtaba Khamenei into the position...
SEATTLE, Washington: Boeing and its largest white-collar union are set to return to the negotiating table on Sunday after contract...
BEIRUT, Lebanon: Six months after US and Israeli forces attacked Iran, killing its Supreme Leader and seriously injuring his son and...
SAO PAULO, Brazil: Brazil's government has filed a lawsuit against Discord, seeking 500 million reais, or about US$97 million, over...
TRISHULI, Nepal: 2,500 people, including more than 700 foreign nationals, are still missing in Nepal and China', as of Saturday, after...
CAIRO/DUBAI: Iran has held fresh talks with neighboring Oman on how to manage the Strait of Hormuz, which has remained largely blocked...
REDWOOD CITY, California: The U.S. Food and Drug Administration has approved Revolution Medicines' targeted drug Rasonque for adults...
(Photo credit: Benny Sieu-Imagn Images) Milwaukee Brewers manager Pat Murphy is running out of superlatives to describe left fielder...
(Photo credit: Bruce Kluckhohn-Imagn Images) This time last week, the Atlanta Braves were searching for answers amid a lackluster...
(Photo credit: Jovanny Hernandez / Milwaukee Journal Sentinel / USA TODAY NETWORK via Imagn Images) An unrelenting rain system led...
(Photo credit: Benny Sieu-Imagn Images) Jackson Chourio and William Contreras each homered in the first inning and Shane Drohan tossed...
(Photo credit: Brad Penner-Imagn Images) Shohei Ohtani's return to the mound this season remains in question with the two-way star...
