KC Federal Reserve Leader Says Tight Labor Market Continues to Fuel Inflation

A Kansas City Federal Reserve leader says four factors have been driving inflation.

KC Fed Executive Vice President Joseph Gruber says inflation has been fueled mostly by a tight labor market, but also by high energy costs, housing costs, and lingering supply chain problems.

Still, Gruber says the economy in the Midwest has been holding its own:

Gruber, who spoke at the St. Joseph Economic Summit, believes the September jobs report will go a long way in whether the Federal Reserve Board of Governors decides to raise interest rates further.