Federal Reserve official Schmid: The stance on inflation has become more cautious since the speech in January

Wallstreetcn
2025.02.27 14:14

Jeff Schmid, President of the Federal Reserve Bank of Kansas City (2025 FOMC voting member): hopes to reduce the size of the Federal Reserve's balance sheet as much as possible.

An increase in the usage of the Federal Reserve's discount window tool may support the Fed's quantitative tightening (QT) efforts.

Since speaking in January, my (personal) stance on inflation has become more cautious.

It may be necessary to balance the relationship between inflation risks and growth concerns.

Focusing on inflation (targets), risks seem to be skewed to the upside.

Inflation expectations are "sharply rising."

I do not want the Federal Reserve to take on reputational risks due to inflation issues.

We are close to achieving our dual mandate (maintaining price stability + achieving maximum employment), but inflation is slightly sticky

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