Fed's Barkin: It's hard to put weight on data from the past three months

SCHMID: INFLATION IS TOO HOT SCHMID: CUTTING RATES COULD WORSEN INFLATION WITHOUT HELPING EMPLOYMENT MUCH FED’S SCHMID SAYS INFLATION IS A TOP CONCERN FOR BUSINESSES, WITH DECEMBER CPI CONSISTENT WITH NEAR-3% INFLATION KC FED'S SCHMID/ECKC: WATCHING HOW ECONOMY EVOLVES BUT FOR NOW 'I SEE LITTLE REASON AT THIS POINT TO FURTHER LOWER THE POLICY RATE' #Schmid #FederalReserve #economy The Economic Outlook and Monetary Policy Thank you for the opportunity to speak with you today. Welcome to the Kansas City Fed. I know many of you have been here before, and it is nice to have you back. But to those who have not visited before, it’s great to have you in the building. One of the benefits of the Fed’s structure, with 12 regional banks spread across the country, is that it allows a level of interaction that would not be possible if all our operations were centralized in Washington. We are your Fed. You should have a connection with this institution, and I hope that being here today will make that connection more immediate and real. We are two weeks into 2026, and while I would like to keep my eyes on road ahead, I keep glancing back, a bit concerned that the developments of 2025 might not be done with us quite yet. Last year introduced a fair amount of uncertainty into the economic outlook—uncertainty that I don’t think has been resolved, including the effect of higher tariffs on prices and output as well as the potential outcomes of the tremendous surge in artificial intelligence investment on financial markets, productivity and employment. But before diving into the outlook, I would like to take a minute to look even further back. This year marks the 250th anniversary of the independence of our great nation, and we have a lot to celebrate. The United States has been a tremendous experiment in political representation, economic organization and freedom. We have a lot to be proud of.