Fed President Schmid warns against relying on productivity gains to lower inflation
Fed official Jeffrey Schmid says rates must stay high to curb demand. He warned that productivity gains are not yet enough to fix still-elevated inflation.
Jeffrey Schmid, the Kansas City Federal Reserve President, stated on Wednesday that it is too soon to rely on rising productivity to resolve still-elevated inflation. Speaking as the United States 
US continues to face price pressures described as still running hot, Schmid urged keeping monetary policy tight to restrain demand. This stance supports a higher-for-longer interest-rate stance that could affect inflation persistence and economic growth.
US continues to face price pressures described as still running hot, Schmid urged keeping monetary policy tight to restrain demand. This stance supports a higher-for-longer interest-rate stance that could affect inflation persistence and economic growth.
