Fed's Schmid: Inflation is the more salient risk for the economy

Schmid is a known hawk and doesn't vote until 2028 so his comments don't carry too much weight:Can't be complacent about inflation expectationsFed must follow through with policy action to validate medium-term and long-term expectationsCan't assume oil price inflation will be transitoryHigher energy prices will increase inflation, including core inflationUS… Schmid is a known hawk and doesn't vote… Schmid is a known hawk and doesn't vote until 2028 so his comments don't carry too much weight: . Can't be complacent about inflation expectations Fed must follow through with policy action to vali... Schmid is a known hawk and doesn't vote until 2028 so his comments don't carry too much weight: Can't be complacent about inflation expectations Fed must follow through with policy action to validate medium-term and long-term expectations Can't assume oil price inflation will be transitory Higher energy prices will increase inflation, including core inflation US economic resilience should not be underestimated Expected modest drag from sustained higher oil prices For… For traders, releases like this can quickly shift rate expectations, currency direction, index futures and broad risk sentiment. Watch the next move in the dollar, front-end yields and index futures to see whether the market prices this release as a true surprise or only a passing headline.