Fed's Schmid says rates not restraining economy, hints at hikes

Investing.com -- Federal Reserve Bank of Kansas City President Jeffrey Schmid said Thursday that current interest rates are not restraining the economy, indicating he still supports raising rates to bring inflation back to the 2% target.

Speaking on CNBC from his bank's annual research conference in Jackson Hole, Wyoming, Schmid said inflation remains "still stubborn and it's still sticky and we've got to continue to find ways to break through" to reach the 2% target.

"I don't know what we're restricting currently with the rate policy that we're at today," Schmid said.

The Kansas City Fed president said the central bank will have work cut out for it as the next meeting approaches. He noted that an energy shock is leaking into the economy and that the Fed needs more information before making policy decisions.

Schmid also said it will take time to change the Fed's balance sheet. He suggested there may be room to have fewer Fed meetings.

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