Fed Schmid: Need for tighter monetary policy to restore inflation to 2 per cent

5 August, United States Federal Reserve Schmidt: The need for tighter monetary policy to restore inflation to the target of 2 per cent. Inflation was too high and worrying, and the current policy position of the Fed was not restrictive. The overall economy performed well and growth was resilient. Recent inflation figures were welcome, but it was too early to say whether to slow down. The job market seemed to be broadly balanced, and the Fed should not ignore inflation, even when caused by supply shocks. The personal consumer expenditure price index is the best way to measure inflation. The Fed should not lose sight of the fact that investment in artificial intelligence is pushing inflation. Kim Xian