KC Fed President Jeff Schmid
- 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.
