MNI BRIEF: Risks To Fed's Mandates 'On The Upswing' - Schmid

Federal Reserve Bank of Kansas City President Jeff Schmid said Wednesday the risks of veering away from full employment and price stability are "on the upswing," though the U.S. economy is starting from a good position. 

"What you're trying to do is balance your mandate and try to see what directionally the risks are going and I think everyone would acknowledge they're on the upswing," he told a Dallas Fed conference. 

In the Kansas City Fed district that spans seven states, agricultural businesses are nervous about the international flow of products under new tariffs, Schmid said. On the other hand, energy prices' drifting down acts like a "shot in the arm," offsetting some upside inflation risks, he said. 

"We've got to be a little patient to see how these things play out, but at the end of the day we are determined and we will act on our mandates and we will act to try to react in a positive way to any of these disruptions that might affect the dual mandate." (See: MNI INTERVIEW: Fed Needs More Hawkish Message - Emmons)