August 22, 2024 11:36 GMT
FED: Schmid Needs More Data Before Supporting Fed Cut
FED
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- Kansas City Fed’s Schmid (’25 voter) has stuck to his hawkish position. Following headlines from speaking on Bloomberg TV:
- "NEED TO SEE MORE DATA BEFORE SUPPORTING RATE CUT
- PAYROLL REVISIONS DON'T CHANGE HOW I THINK ABOUT POLICY
- COULD STILL SEE A DEMAND PICKUP IF FED ISN'T CAREFUL" - bbg
- He is clearly not in the “vast majority” that yesterday's FOMC minutes from the July meeting said were ready to cut at the September meeting.
- Recall he said Aug 8 (post-payrolls, pre-CPI) that it will be appropriate to cut if inflation continues to come in low. The inflation target is close but “not quite there” and the labor market still appears broadly healthy with growth and demand still strong despite the July jobs report.
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