Atlanta Fed's Venable says inflation remains too high

Investing.com -- Atlanta Federal Reserve interim president Cheryl Venable said Tuesday that inflation remains too high, echoing concerns she has heard from contacts across the Southeast region.

The likelihood of declining price pressures depends on unpredictable geopolitical events, particularly the Middle East conflict, Venable said in an essay posted by the Atlanta Fed.

A clear resolution to the war would likely allow oil shipments to move more freely, increase supplies, and reduce energy prices, Venable said. Extended tension and conflict would likely produce the opposite effect.

The central question is whether price pressures will decline in coming months, with much depending on the outcome of the Middle East conflict, she said.

The job market appears broadly stable, Venable said. Her understanding of maximum employment is shaped by the fact that labor supply is stagnant, which represents an unusual circumstance for the United States.

There are nuanced risks to the Fed's inflation and employment mandates, she said.

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