Fed Schmid: The Fed must maintain inflation credibility

The President of the Kansas City Federal Reserve Bank Jeffrey Schmid crossed the newswires on October 6. He delivered hawkish remarks, saying that the Fed must maintain its inflation credibility and stressed that inflation is too high. He added that monetary policy is appropriately calibrated.

Key takeaways:

In balancing its goals, the Fed must maintain inflation credibility.

Inflation is too high. It's worrying that price increases are becoming more widespread.

Monetary policy is appropriately calibrated.

Labor market is cooling and remains healthy.

Monetary policy only slightly restrictive.

Aggressively boosting demand could raise risk of outsized increase in prices.

I'm monitoring alternative labor market and price data closely.

I expect tariffs to have muted effect on inflation.

Hard to Determine If Stablecoin is Anything Different from Venmo on Steroids.

Trump administration working to maximize public service

Sees AI and other innovations as key for obtaining reliable government data

Current interest rates may be lower than usual due to Fed's MBS purchases

Hard to understand how US Dollar would not be the world's reserve currency for a long, long time