Kansas City Fed President Schmid said Sunday inflation remains uncomfortably above the Fed’s 2% target and is moving in the wrong direction; the Fed has tools and a responsibility to address overheating price pressures. He rejected views that recent inflation is purely supply-driven and therefore beyond the Fed’s control, arguing inflation reflects supply–demand imbalances and that strong demand is required for supply shocks to raise prices. He also disputed the claim that demand-driven inflatio

Kansas City Fed President Schmid said Sunday inflation remains uncomfortably above the Fed’s 2% target and is moving in the wrong direction; the Fed has tools and a responsibility to address overheating price pressures. He rejected views that recent inflation is purely supply-driven and therefore beyond the Fed’s control, arguing inflation reflects supply–demand imbalances and that strong demand is required for supply shocks to raise prices. He also disputed the claim that demand-driven inflation from areas such as AI infrastructure is insensitive to monetary policy.