The Fed kept interest rates unchanged in a range of 4.25%-4.50% on July 31.<\/p>\n
Read more: How jobs, inflation, and the Fed are all related<\/a><\/p>\n Schmid’s comments on Thursday suggested risks on the Fed’s mandate remain more tilted toward inflation remaining too high rather than the labor market softening aggressively.<\/p>\n With investors all but certain the Fed will cut rates in the coming weeks \u2014 and with pressures building on the Fed politically to begin a rate-cutting cycle \u2014 this view appears to put Schmid among a dwindling number of Fed officials<\/a> still focused on inflation pressures.<\/p>\n “I think we’re seeing and hearing, more importantly, in the [Kansas City Fed’s] district, that some [of] the risk of [inflation] is higher than maybe seeing some of the labor numbers come back into line,” Schmid said.<\/p>\n Last week’s Consumer Price Index (CPI) report showed that while headline inflation was lower than consensus forecasts, on a “core” basis prices rose more than expected<\/a>. The Producer Price Index (PPI), a read on wholesale prices, also showed inflation pressures building<\/a>.<\/p>\n The July jobs report showed hiring slowed last month, while over 250,000 job additions were revised away from the May and June data.<\/p>\n “We have a lot of things in balance right now in the economy, in my opinion,” Schmid said.<\/p>\n “And I’m just trying to be very careful to [not] try and do too much. That will create an imbalance.”<\/p>\n President of the Federal Reserve Bank of Kansas City Jeffrey Schmid hosts the Kansas City Fed’s annual economic symposium in Jackson Hole, Wyoming, U.S., August 24, 2023. REUTERS\/Ann Saphir \u00b7 REUTERS \/ Reuters <\/p>\n