Fed's Schmid: AI Is Now a Major Driver of Inflation

Fed Official Schmid: Inflation Fight Still Has Way to Go

Fed's Schmid reiterated that central banks remain far from their inflation targets, keeping the focus on PCE data as the key driver of rate-path expectations. With Q3 GDP at 3.68% and ADP employment steady, traders await FOMC meeting minutes and Waller's speech to clarify whether the Fed sees room to cut further.

https://x.com/financialjuice/status/2107522611420733687

Fed Official Schmid: More Rate Cuts Needed Despite Long-Term Yield Rise

Fed Governor Schmid signals the Fed must continue cutting short-term rates even as longer-dated yields climb, sustaining the narrative that policy remains restrictive. This follows Chair Warsh's first rate hike since 2023 and weak US consumer confidence, setting up debate on the Fed's next move ahead of FOMC minutes and Waller's speech this week.

https://x.com/financialjuice/status/2107528123843506624