Odd Lots · Thursday, August 27, 2026
Kansas City Fed President Jeffrey Schmid stated that while the labor force is in a good place, the Fed has not yet completed its job on inflation. He acknowledged the difficulty in bringing inflation down from the mid-threes to the target of 2%, emphasizing that addressing this is crucial for the Fed's mandate and that the market is anticipating potential policy actions.
“I absolutely do. I mean, I've been fairly public about my proclivity to say, look, I think the labor force is in a pretty good place. We haven't done our job yet on inflation. So the question is, and I would say that it gets harder as you trend toward two, right?”
“But we clearly have had a bit of a surge into the mid threes. It has to be addressed. That's our mandate. It's one of the two mandates.”