Federal Reserve (Fed) Bank of Kansas City President Jeff Schmid took a slightly different approach to other Fed officials who also spoke on Thursday, but still remains focused on the overall difficulty of manipulating Fed policy rates in an uneasy post-tariff environment.
Key highlights
I’m uncomfortable with look-through policy approach to tariff-driven price increase.
The extent of tariff-driven price push won’t be fully apparent for some time.
I expect tariffs to start to show through to prices in the coming months.
I’m optimistic that economic activity can be sustained.
I am focused on maintaining the Fed’s credibility on inflation.
Fed policy needs to be nimble to balance two sides of the mandate.