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MNI: Fed’s Schmid - Rates Could Stay High ‘For Some Time’

(MNI) WASHINGTON

Inflation this year is still running at about twice the Fed's 2% target, says KC Fed President

U.S. interest rates could stay high for a while and Federal Reserve policymakers can be patient about keeping borrowing costs at 23-year highs, Kansas City Fed President Jeffrey Schmid said Tuesday.

“My own view is that interest rates could remain high for some time. The economy has undergone seismic shifts so far this decade,” he said in prepared remarks to a summit at the Kansas City Fed, adding that "policy is in the correct place."

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U.S. interest rates could stay high for a while and Federal Reserve policymakers can be patient about keeping borrowing costs at 23-year highs, Kansas City Fed President Jeffrey Schmid said Tuesday.

“My own view is that interest rates could remain high for some time. The economy has undergone seismic shifts so far this decade,” he said in prepared remarks to a summit at the Kansas City Fed, adding that "policy is in the correct place."

Keep reading...Show less