I expect tariffs to start to show through to prices in the coming months

Federal Reserve (Fed) Bank of Kansas City President Jeff Schmid took a slightly different approach to other Fed officials who also spoke on Thursday, but still remains focused on the overall difficulty of manipulating Fed policy rates in an uneasy post-tariff environment.

Key highlights

I’m uncomfortable with look-through policy approach to tariff-driven price increase.

The extent of tariff-driven price push won’t be fully apparent for some time.

I expect tariffs to start to show through to prices in the coming months.

I’m optimistic that economic activity can be sustained.

I am focused on maintaining the Fed’s credibility on inflation.

Fed policy needs to be nimble to balance two sides of the mandate.