As Jackson Hole conference kicks off, three Fed officials issue inflation warnings

Aug 27 (Reuters) - Federal Reserve officials shared on Thursday their ongoing concerns about the U.S. inflation landscape, as central bankers gathered in Jackson Hole, Wyoming for the Kansas City Fed's closely watched annual economic symposium.

Inflation is "still stubborn and it's still sticky and we've got to continue to find ways to break through" and get it back to 2%, Kansas City Fed President ‌Jeffrey Schmid said on CNBC on the sidelines of the conference.

He noted that the U.S. central bank's current policy rate, which was left in the 3.50%-3.75% range at the July 28-29 meeting, did not appear ‌to be restrictive. "I don't know what we're restricting currently with the rate policy that we're at today," Schmid said.

Schmid, who had recently been in favor of raising rates to help bring inflation back down to the Fed's 2% target, seemed to suggest that he would still favor such ​a path, given his belief that monetary policy is not working to counter current price pressures.

But even so, when asked about the outlook for a rate hike at the Fed's September 15-16 policy meeting, he said, "I think we need a little bit more information. What I'm trying to figure out is the demand side of what's driving both growth and inflation."

Cleveland Fed President Beth Hammack, also speaking on CNBC, was similarly anxious about inflation and reiterated her ongoing willingness to act to bring price pressures back in line.

"I don't want to prejudge anything," Hammack said, "but I believe now is the time to act."

Hammack, one of three Fed officials who dissented at last month's meeting in favor of a rate hike, said inflation has been above ‌target for more than five years and monetary policy is not doing anything at ⁠the moment to restrain the economy in order to lower price pressures.

The Cleveland Fed chief said she is hearing more and more from contacts worried about inflation and she fears the longer this trend continues, the greater the risk to the central bank's credibility. Information from local contacts suggests "we're starting to get some of that inflationary mindset" embedding itself in the ⁠economy. "I don't think we're there yet, but that's what I want to make sure we avoid," Hammack said.

In a later interview on the Fox Business Network, Hammack said she believes the job market is in balance and that the U.S. central bank appears unlikely to achieve its price pressure target even by next year. "My forecast is that inflation is going to end this year around 3% and I think we're not going to make significant progress next year. I think we'll get to maybe mid-twos at best," Hammack ​said ​on the network's "Big Money Show" program.