Fed's Schmid (2028 Voter) says they are positioned pretty well

• They don't have a cyclical issue in the labour market and if they did they would look at it different from a monetary policy standpoint.
• Need to keep an eye on macro, and get inflation down to 2%.
• There is more anxiety around the uncertainty of jobs in AI than there is about the economy

Fed's Schmid's comments suggest a cautiously optimistic stance on the labor market and inflation, indicating that current conditions may not necessitate immediate policy shifts. His focus on the need to control inflation to 2% implies that the Fed remains vigilant, although the mention of AI-related job uncertainties reflects broader economic concerns that may shape future discussions. These insights could soften market expectations for aggressive rate moves, especially if labor and inflation trends hold steady.