-
Fed’s Schmid Rejects Preemptive Rate Cuts, Favors ‘Patient’ Approach
Federal Reserve Bank of Kansas City President Jeffrey Schmid said policymakers should wait for “clear and convincing” evidence that inflation is headed back toward 2% before lowering interest rates, rather than adjusting policy preemptively. Schmid said the resilience of the US economy creates uncertainty about the path of policy, adding he’d prefer a “patient” approach to cuts. “With inflation running above target, economic growth continuing to show momentum, and elevated prices across a range of asset markets, the current stance of monetary policy is appropriate,” Schmid said in a prepared speech ... (full story)