> Fed's Schmid: Rates are not overly restrictive, we have time to decide

Fed's Schmid: Rates are not overly restrictive, we have time to decide

Remarks by Kansas City Fed president, Jeffrey Schmid

Thursday, 22/08/2024 | 11:47 GMT

Quite strongly believe that we have to sustainably get inflation back to 2%
There is still work to do on that
We've seen some cooling in labour market conditions but it is still generally pretty strong
On the NFP revision, "it doesn't change a lot" to the outlook
Rates are not overly restrictive
There is room to consider where we go from here

It's not exactly the type of softer language that markets would like to be hearing from the Fed. The narrative that traders want right now is that 'labour market is bad, we want rate cuts now'. So, this doesn't quite fit with that. USD/JPY is now up just above 146.00 with 10-year Treasury yields at the highs for the day at 3.835% - up by 6 bps.