Fed Chair Schmid backs rate hike over inflation above 3%
Schmid says the labor market appears balanced even as he points to data showing inflation running above 3%
Published
Chart: Fed target rate, top of the range
Federal Reserve Chair Schmid has come out in favor of raising interest rates, saying the labor market appears to be in balance while recent data point to inflation trending above 3%.
The Fed this week raised its target range to 3.75% to 4% and signaled one more increase before the year is out. Schmid's remarks track that move and its stated aim of keeping price pressures in check.
His position puts the central bank at odds with the White House, which has pushed for lower rates and criticized the Fed's tightening. It also puts Schmid alongside other officials who have taken a hawkish line in recent weeks. Taken together, the stance signals that the Fed intends to keep fighting inflation despite pressure from Washington, and that traders betting on a near-term pivot to rate cuts have little in this statement to support that view.