Kansas City Fed President makes inflation statement

Kansas City Fed President Jeff Schmid said he was more confident that inflation would continue toward his 2% target. One of the Fed’s most hawkish policymakers, Kansas City Fed President Jeff Schmid, said on Thursday that the latest data provided more confidence that inflation was cooling and that the Fed was setting the table for a rate cut. “Given the shock we’ve had in inflation for decades, we should be looking for the worst in the data rather than the best,” Schmid said. He also noted that prices can be volatile and that the Fed needs “longer periods” to be confident about the path of inflation. “But if inflation remains low, I think I will have greater confidence that we are on track to achieve our mission of price stability and I think it would be appropriate to adjust the policy stance accordingly,” Schmid said.