Latest news with #JeffSchmid
Yahoo
4 days ago
- Business
- Yahoo
Fed's Schmid Says Policy Stance Still Appropriate for Time Being
(Bloomberg) -- Federal Reserve Bank of Kansas City President Jeff Schmid said he favors keeping interest rates on hold for the time being to prevent robust economic activity from adding to inflation pressures. Sunseeking Germans Face Swiss Backlash Over Alpine Holiday Congestion New York Warns of $34 Billion Budget Hole, Biggest Since 2009 Crisis To Head Off Severe Storm Surges, Nova Scotia Invests in 'Living Shorelines' Five Years After Black Lives Matter, Brussels' Colonial Statues Remain A New Stage for the Theater That Gave America Shakespeare in the Park 'With the economy still showing momentum, growing business optimism, and inflation still stuck above our objective, retaining a modestly restrictive monetary policy stance remains appropriate for the time being,' Schmid said Tuesday in remarks prepared for an event in Oklahoma City. He added that he's ready to change his views if demand growth starts 'weakening significantly.' Fed officials have left interest rates on hold at each of their five meetings this year as they waited to see how tariffs and other policies would impact the economy. With the latest data showing a sharp slowdown in hiring and relatively muted inflation, investors are pricing in a quarter-point rate cut at the next policy meeting in September. Schmid, who votes on monetary policy decisions this year, said the current environment of moderate demand growth and a cooling labor market is helping temper the pass—through of tariffs to inflation, and that the Fed has a key role to play in that. 'The Fed cannot offset the effect of higher tariffs on prices, but what the Fed can do is monitor demand growth, provide space for the economy to adjust and keep inflation on a path to 2%,' Schmid said. 'Overall, I am anticipating a relatively muted effect of tariffs on inflation, but I view that as a sign that policy is appropriately calibrated rather than a sign that the policy rate should be cut.' A report released earlier Tuesday showed the consumer price index, excluding volatile food and energy prices, increased 0.3% in July from a month earlier. While that marked an acceleration, the data suggested the impact of tariffs on goods prices was more modest than in June. Why It's Actually a Good Time to Buy a House, According to a Zillow Economist Bessent on Tariffs, Deficits and Embracing Trump's Economic Plan The Social Media Trend Machine Is Spitting Out Weirder and Weirder Results Klarna Cashed In on 'Buy Now, Pay Later.' Now It Wants to Be a Bank The Game Starts at 8. The Robbery Starts at 8:01 ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Fed's Schmid Says Policy Stance Still Appropriate for Time Being
(Bloomberg) -- Federal Reserve Bank of Kansas City President Jeff Schmid said he favors keeping interest rates on hold for the time being to prevent robust economic activity from adding to inflation pressures. Sunseeking Germans Face Swiss Backlash Over Alpine Holiday Congestion New York Warns of $34 Billion Budget Hole, Biggest Since 2009 Crisis To Head Off Severe Storm Surges, Nova Scotia Invests in 'Living Shorelines' Chicago Schools' Bond Penalty Widens as $734 Million Gap Looms Five Years After Black Lives Matter, Brussels' Colonial Statues Remain 'With the economy still showing momentum, growing business optimism, and inflation still stuck above our objective, retaining a modestly restrictive monetary policy stance remains appropriate for the time being,' Schmid said Tuesday in remarks prepared for an event in Oklahoma City. He added that he's ready to change his views if demand growth starts 'weakening significantly.' Fed officials have left interest rates on hold at each of their five meetings this year as they waited to see how tariffs and other policies would impact the economy. With the latest data showing a sharp slowdown in hiring and relatively muted inflation, investors are pricing in a quarter-point rate cut at the next policy meeting in September. Schmid, who votes on monetary policy decisions this year, said the current environment of moderate demand growth and a cooling labor market is helping temper the pass—through of tariffs to inflation, and that the Fed has a key role to play in that. 'The Fed cannot offset the effect of higher tariffs on prices, but what the Fed can do is monitor demand growth, provide space for the economy to adjust and keep inflation on a path to 2%,' Schmid said. 'Overall, I am anticipating a relatively muted effect of tariffs on inflation, but I view that as a sign that policy is appropriately calibrated rather than a sign that the policy rate should be cut.' A report released earlier Tuesday showed the consumer price index, excluding volatile food and energy prices, increased 0.3% in July from a month earlier. While that marked an acceleration, the data suggested the impact of tariffs on goods prices was more modest than in June. Why It's Actually a Good Time to Buy a House, According to a Zillow Economist Bessent on Tariffs, Deficits and Embracing Trump's Economic Plan The Social Media Trend Machine Is Spitting Out Weirder and Weirder Results Klarna Cashed In on 'Buy Now, Pay Later.' Now It Wants to Be a Bank The Game Starts at 8. The Robbery Starts at 8:01 ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
6 days ago
- Business
- Bloomberg
Fed's Schmid Says Policy Stance Still Appropriate for Time Being
Federal Reserve Bank of Kansas City President Jeff Schmid said he favors keeping interest rates on hold for the time being to prevent robust economic activity from adding to inflation pressures. 'With the economy still showing momentum, growing business optimism, and inflation still stuck above our objective, retaining a modestly restrictive monetary policy stance remains appropriate for the time being,' Schmid said Tuesday in remarks prepared for an event in Oklahoma City.
Yahoo
6 days ago
- Business
- Yahoo
CPI, Circle & CoreWeave earnings, Fed commentary: What to Watch
Yahoo Finance Senior Reporter Allie Canal takes a look at the top stories for investors to watch on Tuesday, Aug. 12. Consumer Price Index (CPI) data for July will be released in the morning, giving economists and the Federal Reserve a clearer picture of US inflation. Richmond Fed President Tom Barkin and Kansas City Fed President Jeff Schmid will be delivering remarks. In the morning, Circle (CRCL), Tencent Music (TME), and On Holding (ONON) will report earnings. CoreWeave (CRWV), Cava (CAVA), and Rigetti Computing (RGTI) will announce results in the afternoon. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime. Time now for What to Watch Tuesday, August 12th. Starting off on the economy, we'll get a key read on inflation Tuesday with the consumer price index. Economists expect headline CPI to ease slightly to .2% for the month, while core CPI, which strips out food and energy, that's expected to tick up to .3%. Those numbers will give the Fed more clues as it maps out its next move on interest rates. And speaking of the Fed, we'll also hear from Richmond Fed President Tom Barkin and Kansas City Fed President Jeffrey Schmidt. This follows President Trump's post on Truth Social last week, announcing his pick of Stephen Moore, and the current Council of Economic Advisors Chairman to fill the seat of Fed Governor Adriana Kugler. And turning to earnings, more results are on deck tomorrow from Circle, Coreweave and Cava. Coreweave will report second quarter results after the closing bell, with analysts expecting solid orders for the cloud computing company, fueled by increased infrastructure spending for major AI players like Microsoft, Google, and OpenAI.
Yahoo
25-06-2025
- Business
- Yahoo
Fed's Schmid says there is time to study tariff effects before rate cuts
By Howard Schneider WASHINGTON (Reuters) -The U.S. Federal Reserve has time to study the effect of rising import tariffs on prices and economic growth before deciding on further interest rate cuts, Kansas City Fed President Jeff Schmid said on Tuesday. "The current posture of monetary policy, which has been characterized as 'wait-and-see,' is appropriate," Schmid said in remarks prepared for delivery to an agricultural summit in Nebraska. "The resilience of the economy gives us the time to observe how prices and the economy develop," before changing the benchmark policy rate, said Schmid, a voter this year on the Fed's rate-setting Federal Open Market Committee, which next meets on July 29-30. The Fed has held its benchmark rate steady in a range from 4.25% to 4.5% since December, despite calls from President Donald Trump for rate cuts. Fed officials in recent projections anticipate two rate cuts by the end of the year, but have highlighted uncertainty around trade policy and in general expect to see slower growth, higher unemployment and higher inflation in coming months. Inflation remains above the Fed's 2% target, and "contacts almost uniformly expect increased tariffs to push up prices and to weigh on activity," Schmid said, adding it seemed "likely" the Fed's inflation and job goals "will come into conflict." But "there is far less clarity on when and by how much," said Schmid, an argument for leaving interest rates unchanged until the economy's direction is clearer.
