Kansas City Fed President Jeffrey Schmid warned that inflation remained stubborn and that the energy shock was spreading into the broader economy. With the next meeting approaching, he said the Fed needed more information but remained committed to returning inflation to 2%.

Key Quotes

Inflation is stubborn and sticky.

The Fed will have its work cut out as the next meeting looms.

It is unclear what Fed policy is restricting right now.

The Fed needs more information.

The energy shock is leaking into the economy.

The Fed needs to get inflation back to 2%.

It will take time to change the Fed’s balance sheet.

There may be room to hold fewer Fed meetings.