The Fed Sticks to the Fight Against Inflation
Jeffrey Schmid, the president of the Kansas Fed, confirmed that inflation still poses the biggest threat to the U.S. economy, stressing the need for the Fed to remain committed to bringing prices back to the 2% target.
Schmid clarified that the time is 'not suitable for slacking off', especially with ongoing inflationary pressures and rising energy prices, which boosts expectations for a tighter monetary policy for a longer period.
These statements reduce the likelihood of a rate cut soon and may put pressure on high-risk assets like stocks and cryptocurrencies, while supporting the strength of the dollar and U.S. bonds.
Markets are now on the lookout for any new signals from the Fed regarding the future of interest rates, particularly with ongoing concerns about global inflation and oil prices.
#FedSchmidUrgesInflationCommitment
Jeffrey Schmid, the president of the Kansas Fed, confirmed that inflation still poses the biggest threat to the U.S. economy, stressing the need for the Fed to remain committed to bringing prices back to the 2% target.
Schmid clarified that the time is 'not suitable for slacking off', especially with ongoing inflationary pressures and rising energy prices, which boosts expectations for a tighter monetary policy for a longer period.
These statements reduce the likelihood of a rate cut soon and may put pressure on high-risk assets like stocks and cryptocurrencies, while supporting the strength of the dollar and U.S. bonds.
Markets are now on the lookout for any new signals from the Fed regarding the future of interest rates, particularly with ongoing concerns about global inflation and oil prices.
#FedSchmidUrgesInflationCommitment