Latest news with #JeffSchmid
Reuters
4 days ago
- Business
- Reuters
Fed's Schmid: uncomfortable with looking through tariff-driven price push
June 5 (Reuters) - Kansas City Federal Reserve Bank President Jeff Schmid on Thursday expressed concern that tariffs could rekindle inflation, saying upward price pressure could be apparent in coming months but not fully known for much longer. The comments show Schmid is likely inclined to hold the Fed policy rate steady not just at its upcoming June 17-18 meeting as is widely expected but for some time after that as well, to make sure that inflation, which is now near the Fed's 2% goal, doesn't get out of hand. "While theory might suggest that monetary policy should look through a one-time increase in prices, I would be uncomfortable staking the Fed's reputation and credibility on theory," Schmid said in remarks prepared for delivery to a banking conference hosted at his regional Fed bank's headquarters. At the same time, he said, he's "optimistic" about the economy's momentum, despite widespread belief that tariffs will slow growth and weaken the labor market. "While the tariffs are likely to push up prices, the extent of the increase is not certain, and likely will not be fully apparent for some time," Schmid said. "Likewise, the extent of the drag on growth and employment is also unclear." In response, he said, the Fed will "need to remain nimble" to balance its twin objectives of price stability and full employment.
Bloomberg
4 days ago
- Business
- Bloomberg
Schmid Says Fed Needs Flexibility Given Great Tariff Uncertainty
Federal Reserve Bank of Kansas City President Jeff Schmid said he and his colleagues will need to be nimble as they assess how tariffs will impact the economy. 'While the tariffs are likely to push up prices, the extent of the increase is not certain, and likely will not be fully apparent for some time,' Schmid said Thursday in prepared remarks for an event in Kansas City. 'Likewise, the extent of the drag on growth and employment is also unclear.'
Zawya
17-04-2025
- Business
- Zawya
Fed's Schmid says patience needed to see how tariffs play out
The Federal Reserve faces a complicated picture for policy decisions, Kansas City Federal Reserve Bank President Jeff Schmid said on Wednesday, noting that while he is hearing nervousness about tariffs in the agricultural sector, a recent decline in energy prices may deliver an offsetting "shot in the arm" that could somewhat limit inflation. "I just think that we've got to, we've got to be a little patient to see how some of these things play out," Schmid said in a webcast conversation with Dallas Federal Reserve Bank President Lorie Logan at a Dallas Fed event. At the end of the day, he said, the Fed will "react in a positive way to any of those disruptions that might affect that dual mandate," referring to the Fed's mandates of achieving both price stability and full employment. Earlier on Wednesday, Fed Chair Jerome Powell said the U.S. central bank would wait for more data on the economy before considering any change in rates. But he warned that President Donald Trump's tariff policies risk both higher inflation and higher unemployment that could potentially force the Fed into choosing which fight to prioritize. Schmid and Logan did not have an in-depth discussion on interest-rate policy or of recent market volatility as investors digest the implications of Trump's trade policy. Schmid briefly touched on the importance of the Fed's political independence, which he said is what allows Fed policymakers to set rates with nothing but the financial and economic stability of Americans in mind. "Everything is being challenged now. ... All the firewalls we thought we had have turned into screen doors," he said. But, he added, "I think you are tested by fire ... and frankly the people I talk to, both politicians and the public, seem to be pleased with that structure, so I'm very optimistic." (Reporting by Ann Saphir; Editing by Sandra Maler and Leslie Adler)
Yahoo
17-04-2025
- Business
- Yahoo
Fed's Schmid says patience needed to see how tariffs play out
(Reuters) - The Federal Reserve faces a complicated picture for policy decisions, Kansas City Federal Reserve Bank President Jeff Schmid said on Wednesday, noting that while he is hearing nervousness about tariffs in the agricultural sector, a recent decline in energy prices may deliver an offsetting "shot in the arm" that could somewhat limit inflation. "I just think that we've got to, we've got to be a little patient to see how some of these things play out," Schmid said in a webcast conversation with Dallas Federal Reserve Bank President Lorie Logan at a Dallas Fed event. At the end of the day, he said, the Fed will "react in a positive way to any of those disruptions that might affect that dual mandate," referring to the Fed's mandates of achieving both price stability and full employment. Earlier on Wednesday, Fed Chair Jerome Powell said the U.S. central bank would wait for more data on the economy before considering any change in rates. But he warned that President Donald Trump's tariff policies risk both higher inflation and higher unemployment that could potentially force the Fed into choosing which fight to prioritize. Schmid and Logan did not have an in-depth discussion on interest-rate policy or of recent market volatility as investors digest the implications of Trump's trade policy. Schmid briefly touched on the importance of the Fed's political independence, which he said is what allows Fed policymakers to set rates with nothing but the financial and economic stability of Americans in mind. "Everything is being challenged now. ... All the firewalls we thought we had have turned into screen doors," he said. But, he added, "I think you are tested by fire ... and frankly the people I talk to, both politicians and the public, seem to be pleased with that structure, so I'm very optimistic."
Reuters
17-04-2025
- Business
- Reuters
Fed's Schmid says patience needed to see how tariffs play out
April 16 (Reuters) - The Federal Reserve faces a complicated picture for policy decisions, Kansas City Federal Reserve Bank President Jeff Schmid said on Wednesday, noting that while he is hearing nervousness about tariffs in the agricultural sector, a recent decline in energy prices may deliver an offsetting "shot in the arm" that could somewhat limit inflation. "I just think that we've got to, we've got to be a little patient to see how some of these things play out," Schmid said in a webcast conversation with Dallas Federal Reserve Bank President Lorie Logan at a Dallas Fed event. At the end of the day, he said, the Fed will "react in a positive way to any of those disruptions that might affect that dual mandate," referring to the Fed's mandates of achieving both price stability and full employment. Earlier on Wednesday, Fed Chair Jerome Powell said the U.S. central bank would wait for more data on the economy before considering any change in rates. But he warned that President Donald Trump's tariff policies risk both higher inflation and higher unemployment that could potentially force the Fed into choosing which fight to prioritize. Schmid and Logan did not have an in-depth discussion on interest-rate policy or of recent market volatility as investors digest the implications of Trump's trade policy. Schmid briefly touched on the importance of the Fed's political independence, which he said is what allows Fed policymakers to set rates with nothing but the financial and economic stability of Americans in mind. "Everything is being challenged now. ... All the firewalls we thought we had have turned into screen doors," he said. But, he added, "I think you are tested by fire ... and frankly the people I talk to, both politicians and the public, seem to be pleased with that structure, so I'm very optimistic."
