Fed's Schmid warns inflation fight has a “way to go”

Kansas City Federal Reserve (Fed) President Jeffrey Schmid said on Tuesday that the labor market remains in a good place, and he remains concerned about the high cost of living, saying “inflation is frustrating, must be fixed.”

Schmid added that credibility is “at stake in fighting inflation,” and that the US central bank has a “way to go” to bring prices to the Federal Reserve’s 2% goal.

Key highlights:

Labor force remains in a good place

Inflation is frustrating, must be fixed

Still have a way to go in beating inflation

AI is now one of the largest drivers of inflation

Fed's credibility at stake in fighting inflation