Federal Reserve's Schmid said he voted in favor of raising interest rates, and recent data shows inflation trends exceeding 3%. Raising interest rates is a step towards restoring the 2% inflation target. The current inflation problem is not just an energy issue, as price growth remains hot in a wide range of goods and services.
AI interpretation: Federal Reserve officials have clearly released hawkish signals, emphasizing that inflation stickiness has permeated a wide range of goods and services sectors. The current inflation level far exceeds the target range, forcing decision-makers to suppress price pressure through tightening measures. This statement directly negates the expectation of a short-term shift towards easing and strengthens the policy tone of maintaining a high interest rate environment in the long term. The market needs to reassess the Federal Reserve's tough stance in combating inflation, and the risk of maintaining high interest rates has significantly increased.
