Fed’s Schmid says inflation is still too high, Fed has more work to do

Kansas City Federal Reserve Bank President Jeffrey Schmid, speaking at the regional bank’s agricultural summit:

• Policy is in the correct place
• Continued vigilance,
  flexibility are necessary
• Prepared to be
  patient as inflation eases back toward 2%
• Inflation
  expectations remain relatively low and anchored
• Inflation is still
  too high, Fed has more work to do
• Interest rates could
  remain high for some time
• Labor market has
  come off a historic boil by many measures
• There are signs that
  imbalances driving inflation are easing
• Fed must preempt
  inflation from becoming ingrained
• Fed’s job on
  inflation is made easier by supply increases
• My preference is to
  shrink Fed’s balance sheet as much as possible, consistent with
  operating framework

Schmid not departing from the current script for Fed officials, “Interest rates could remain high for some time”.

This article was written by Eamonn Sheridan at www.forexlive.com.