Schmid Supports Interest Rate Hike as Kansas City Fed President
Jeff Schmid, President of the Kansas City Federal Reserve Bank, has expressed support for the Federal Reserve's interest rate hike. He believes that rising oil prices and inflation, excluding energy, necessitate additional measures to curb inflation. Schmid stated at an event in Vail, Colorado, on the 18th that this rate hike is a step towards controlling high inflation. On the 16th, the Fed raised the benchmark interest rate by 0.25 percentage points to a range of 3.75% to 4.00%, a decision made unanimously. Schmid emphasized that inflation, excluding energy, remains at a high level, which does not align with the Fed's price stability goals. He mentioned that there is still work to be done by the Fed in response to inflation, and this action is a step in that direction. Additionally, he assessed that the labor market is stable and economic growth is robust. This rate hike marks the first increase in the benchmark interest rate by the Fed in over three years, with FOMC members unanimously deciding to raise rates.
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