Fed's Schmid: Don't Want to 'Overshoot' Amid Supply Shocks
Kansas City Fed President Jeff Schmid stated that a key challenge for monetary policymakers is distinguishing between true demand and supply shocks. He expressed a desire to avoid overshooting policy targets, particularly as headline inflation measures potentially stabilize.
Kansas City Fed President Jeff Schmid said one of the main challenges for policymakers is determining what lies behind a supply shock and what is true demand, speaking in Asheville, North Carolina. Schmid said he hopes that once headline pricing calms down, policymakers can avoid overshooting.