Federal Reserve's Bostic: Fed Policy Still Accommodative, Inflation Still Above Target

BlockBeats News, August 27, Federal Reserve's Schmid: Current Interest Rates Have Not Constrained the U.S. Economy

Schmid stated, "For me, I think short-term interest rates may be on the accommodative side. So, we still have work to do." At the meeting in July, policymakers voted to keep the interest rate in the range of 3.5% to 3.75%. Three officials dissented and supported a rate hike.

The meeting minutes showed that many officials, including some non-voting ones, favored a rate hike, with many others also stating that if inflation did not decrease, monetary policy would need to be tightened. "Some of my colleagues dissented at the last meeting, so I may also belong to that camp," Schmid said.

Schmid also rebutted the view that the Fed's reputation has been damaged. Previously, Fed Chair Powell's poorly received news conference in July caused a strong market reaction in the bond market, leading some to believe that this harmed the Fed's credibility. (Golden Finance)