Fed's Schmid: Fed expected to achieve 2% inflation target by 2026
Odaily Odaily News reports that Federal Reserve Chair Schmid said the Fed is not expected to achieve its 2% inflation target until 2026. The final stage of bringing inflation down to 2% may be the most challenging for monetary policy. The Fed's quantitative tightening is to some extent at odds with rate cuts. The Fed's balance sheet stance is still exerting downward pressure on yields. Currently, opposing moves to halt the Fed's balance sheet reduction. Unwilling to see balance sheet reduction measures lead to volatility.
