Kansas City Federal Reserve Bank President Jeffrey Schmid, speaking at the regional bank’s agricultural summit:
- Policy is in the correct place
- Continued vigilance,
flexibility are necessary - Prepared to be
patient as inflation eases back toward 2% - Inflation
expectations remain relatively low and anchored - Inflation is still
too high, Fed has more work to do - Interest rates could
remain high for some time - Labor market has
come off a historic boil by many measures - There are signs that
imbalances driving inflation are easing - Fed must preempt
inflation from becoming ingrained - Fed’s job on
inflation is made easier by supply increases - My preference is to
shrink Fed’s balance sheet as much as possible, consistent with
operating framework
Schmid not departing from the current script for Fed officials, “Interest rates could remain high for some time”.
This article was written by Eamonn Sheridan at www.forexlive.com. Source