Fed’s Schmid Warns Inflation Could Get Stuck Close to 3%

Federal Reserve Bank of Kansas City Jeff Schmid cautioned that the US central bank should not look through the impact on inflation of a surge in energy prices stemming from the conflict in Iran.

“This oil shock comes at a time when inflation already has been too high for too long,” Schmid said Tuesday in remarks prepared for an event in Oklahoma City. “With inflation already running hot, now is not the time to assume that the inflation from higher oil prices will be transitory.”

Kansas City Fed President Jeff Schmid.

Photographer: David Paul Morris/Bloomberg

Schmid said the increase in oil and gas prices will likely feed through to ...