Odd Lots · Thursday, August 27, 2026
Kansas City Fed President Jeffrey Schmid believes the yield curve is normalizing, influenced by economic growth and the increasing demand for credit driven by technology and AI. He stated that the price of money is influenced by supply and demand dynamics, and the current yield curve appears normal for an economy growing between 2% and 3.5%.
“So all I can say is it seems to me like the demand or the yield curve is fairly normalized inside of an economy that's growing somewhere between 2% and 3.5%.”
“And that the price of money is going to be influenced by some of the more dynamic growth curves inside GDP, most notably inside the data center build, the AI build.”