Fed's Schmid says he's more confident inflation heading to 2% goal
"Given the multi-decade shock to inflation that we have experienced, we should be looking for the worst in the data rather than the best," Schmid said, noting that prices can be volatile and the Fed needs "longer periods" to be sure of inflation's path. "However, if inflation continues to come in low, my confidence will grow that we are on track to meet the price stability part of our mandate, and it will be appropriate to adjust the stance of policy," he said in remarks prepared for delivery to the Kansas Bankers Association's annual meeting in Colorado Springs, Colorado. With inflation at around 2.5% and the Fed's goal at 2%, he said, the Fed is "close, but we are still not quite there."
