Kansas City Fed's Schmid: Inflation Remains 'Sticky'

Jeffrey Schmid, head of the Kansas City Fed and a voting member of the Federal Open Market Committee, said inflationary pressure in the U.S. economy has persisted longer than expected. He noted the current interest rate level cannot be called 'restrictive' for the economy, hinting at possible further policy tightening. The remarks came amid mixed signals from the labor market and consumer spending, creating uncertainty for bond and equity investors. Markets are closely watching such comments from Fed officials ahead of upcoming meetings, as they shape rate expectations. For Kazakhstani investors, the trajectory of Fed rates remains an important factor influencing the dollar exchange rate and global capital flows.