Fed's Schmid: Sorting out energy shock's impact is a big challenge
USO•Kansas City Fed President Jeff Schmid said high energy prices make it difficult for U.S. central bankers to determine whether inflation remains persistent and how long the supply shock may affect inflation.
1. Inflation challenge
Sorting out the impact of high energy prices on inflation remains a challenge for U.S. central bankers, Kansas City Fed President Jeff Schmid said. He called determining what lies beneath the supply shock and how long it may affect inflation “probably one of the bigger challenges for monetary policy today.”
