Fed/Schmid: The Battle Against Inflation is Not Over Yet

Foreks - Kansas Fed President Jeffrey Schmid stated that he believes both inflation and employment are moving towards desired levels. However, he emphasized that the fight against inflation is not yet over. In his remarks, Schmid noted that U.S. monetary policy continues to be restrictive but not excessively so.

Schmid said, "We will continue to operate monetary policy where we think the neutral rate is," arguing that the current rate, set in a range of 4.5% to 4.75%, is “somewhat restrictive, but not overly restrictive.”

Stating that "now is the time to reduce the restrictiveness of policy," Schmid also mentioned, "I see full employment, a tendency for inflation to decrease, and solid growth."

He cautioned investors that, despite the Fed not planning preemptive measures for government policies that may arise next year, it has more than enough ammunition to prevent inflationary pressures stemming from the policies that will be implemented.