Fed's Schmid: Don't Let One Month of Optimistic Data Lead to Premature Easing of Vigilance

Odaily News: Fed's Schmid stated, "When assessing the economy, my focus is entirely on inflation, which remains too high. The Fed defines price stability as a 2% inflation rate. Why 2%? Because that level appears to be just right, without materially affecting the day-to-day decisions of households and businesses. However, despite the encouraging signs of cooling in the latest June inflation data, it is still too early to rely too heavily on a single data point relative to recent trends. Volatile oil prices both pushed inflation higher in previous months and played a significant role in the pullback seen in June. With oil prices rising again, it remains uncertain whether any relief on the energy front can be sustained." (Jin10)