Fed's Schmid: Inflation Biggest Risk, May Need Higher Rates
Kansas City Fed President Jeffrey Schmid named inflation the top threat to the US economy and hinted that further rate hikes might be necessary to control price pressures.
Kansas City Federal Reserve President Jeffrey Schmid stated Thursday that inflation remains the most significant risk facing the US economy.
The official raised the possibility that the central bank may need to keep interest rates elevated or even tighten policy further to ensure price stability. Schmid's remarks come as the Fed continues to weigh its next moves amid lingering inflationary pressures.
The comments suggest a hawkish tilt among some Fed officials, which could influence expectations for the path of US interest rates.
Source: FXStreet Forex News