Kansas City Fed President Schmid said the Fed needs tighter monetary policy to return inflation to its 2% target and that the current stance is not restrictive. He warned inflation remains too high and should not be ignored even if driven by supply shocks, that recent relief in energy prices may be temporary, and that investment in artificial intelligence is pushing up inflation.

2026-08-05

Kansas City Fed President Schmid said the Fed needs tighter monetary policy to return inflation to its 2% target and that the current stance is not restrictive. He warned inflation remains too high and should not be ignored even if driven by supply shocks, that recent relief in energy prices may be temporary, and that investment in artificial intelligence is pushing up inflation.