Fed's Schmid: Takes little solace from theory that tariffs will be one-off price hike
Tariff announcements have elevated economic uncertaintyIntend to remain focused on inflation, do not take much solace from theory that tariffs may have only temporary effect on inflationNot willing to take a chance with the Fed's credibility on inflationTariff announcements coincided with falling sentiment and rise in short-term inflation expectationsComments do not reflect latest CPI report or pause on some tariffsThis is one of the stronger pushbacks on market pricing for rate cuts. This article was written by Adam Button at www.forexlive.com.
- Tariff announcements have elevated economic uncertainty
- Intend to remain focused on inflation, do not take much solace from theory that tariffs may have only temporary effect on inflation
- Not willing to take a chance with the Fed's credibility on inflation
- Tariff announcements coincided with falling sentiment and rise in short-term inflation expectations
- Comments do not reflect latest CPI report or pause on some tariffs
This is one of the stronger pushbacks on market pricing for rate cuts.
