Kansas City Fed President Jeffrey Schmid cites elevated energy costs as a drag on household budgets amid persistent inflation concerns.
Kansas City Federal Reserve President Jeffrey Schmid stated that rising oil prices are reducing consumers’ purchasing power, potentially slowing economic activity. He emphasized that inflation remains “too hot” and dismissed recent spikes as transitory.
Schmid noted the US economy is less vulnerable to energy shocks than in the past but stressed the Fed’s focus on returning inflation to its 2% target. He also observed that AI-related hiring slowdowns have not led to increased layoffs, with job market balance supported by healthcare sector growth.
The US Dollar Index (DXY) showed no immediate reaction, trading 0.1% higher at 99.10 following his remarks.