Kansas City Federal Reserve Bank President Jeffrey Schmid:
- No need to preemptively adjust the stance of policy.
- Fed should be patient, wait for convincing evidence that inflation fight has been won.
- In 'no hurry' to halt the ongoing reduction in size of Fed's balance sheet.
- We are not out of the woods yet on 'too high' inflation.
- How much further Fed can shrink its balance sheet 'an open question'.
- Don't favor 'overly cautious' approach to balance sheet runoff; some interest-rate volatility should be tolerated.
- Fed should minimize its footprint in the financial system, particularly as relates to Fed's balance sheet.
- Returning inflation to 2% will likely require restoring balance in labor markets, moderating wage growth.
- Reducing Fed's balance sheet should be a priority once crisis has passed.
- Large Fed balance sheet can create unintended consequences, including on bank lending, liquidity.
- January CPI inflation data argues for caution.
- Large Fed balance sheet can create asset-price distortions.
- Bank regulators should take tailored approach.
Headlines via Reuters
It seems like all the Fed officials are reading from a script. Key message is there is no hurry for the first rate cut.
KC Fed name Jeffrey Schmid as the new President
More:
- Further disinflation 'will need to come through services' which continue to 'rise briskly'
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