Kansas City Federal Reserve Bank President Jeff Schmid said he supported this week's rate hike as a necessary measure to curb high inflation, as the driving factor behind it was not just rising oil prices. Schmid said that even after excluding energy, inflation “has always been overheated.” He also said that “a wide range of goods and services” have also experienced price increases contrary to the Federal Reserve's goal of stabilizing prices. “The Federal Reserve still has work to do on inflation. This week's action is a step in this direction,” Schmid said at an event in Vail, Colorado on Friday. “The rise in oil prices has always been an important driver of high inflation, but we must recognize that our inflation problem is not just about energy.” Schmid said that the labor market appears to be in balance, and the economy is growing steadily.

Kansas City Federal Reserve Bank President Jeff Schmid said he supported this week's rate hike as a necessary measure to curb high inflation, as the driving factor behind it was not just rising oil prices. Schmid said that even after excluding energy, inflation “has always been overheated.” He also said that “a wide range of goods and services” have also experienced price increases contrary to the Federal Reserve's goal of stabilizing prices. “The Federal Reserve still has work to do on inflation. This week's action is a step in this direction,” Schmid said at an event in Vail, Colorado on Friday. “The rise in oil prices has always been an important driver of high inflation, but we must recognize that our inflation problem is not just about energy.” Schmid said that the labor market appears to be in balance, and the economy is growing steadily.