Fed's Schmid Talks Policy, Inflation, Credibility, Communication

• Monetary policy may still be accommodative, not restrictive, implying a need for further tightening.
• A bit higher interest rate might make sense, potentially as soon as the September 16th FOMC meeting.
• The October 28th meeting is not off the table for policy action, despite its proximity to the election.
• The Fed's mandate is to keep prices at 2% inflation and maintain full employment, and there's a need for more real-time data to achieve this effectively.

Federal Reserve Bank of Kansas City President Jeff Schmid suggests that monetary policy may still be accommodative and that a rate hike could be justified as early as September 16. He emphasizes the need to address underlying demand elements contributing to inflation and rejects the notion of a Fed credibility issue, advocating for more real-time data for policy decisions.