Fed’s Schmid supports rate hike as inflation broadens beyond 3%

On Friday, Kansas City Fed President Jeffrey Schmid said he supported the rate hike, as “recent data suggest inflation trending above 3%.” Schmid added that tightening policy is a step toward achieving the Fed’s 2% goal and that inflation has broadened across a set of goods and services and that the economy is performing well.

Key highlights:

I supported rate hike, recent data suggest inflation trending above 3%.

Rate hike was a step towards returning to the 2% target.

Current inflation problem not just about energy. Price growth has been 'hot' across a broad set of goods and services.

High inflation a sign supply and demand are out of balance.

Outside of inflation, the economy is performing well.

Labor market appears in balance and economic growth solid.