Schmidt’s statement is pretty hawkish—if inflation doesn’t come down to 2%, it looks like the rate-hike toolbox will have to keep working. As for that little bit of cooling in the labor market, it really isn’t enough to be considered meaningful.

Federal Reserve official Schmeidt said they will continue to closely monitor persistently high inflation, urging officials to state clearly that they are willing to take all necessary measures to achieve price stability. Given that inflation remains above 2%, vigilance cannot be relaxed, and there is a need to continuously communicate the determination to maintain price stability and the willingness to fulfill their statutory mission. It was also noted that slowing immigration and an increase in retirements are bringing the labor market toward a balance of supply and demand, and that current inflation is viewed as the most urgent risk to the U.S. economy.