Fed’s Schmid says patience needed to see how tariffs play out

During a conversation at a Dallas Fed event, Schmid noted anxiety around agricultural tariffs, yet a decline in energy prices may help alleviate inflation pressures. He reiterated the Fed’s intent to analyze further economic data before implementing any policy changes.

Schmid stressed the importance of the Fed’s political independence, allowing for objective rate-setting focused on financial stability. He expressed optimism regarding the public and politicians’ support for the Fed’s structural integrity amid current economic challenges.