Federal Reserve Bank of Kansas City president Jeffrey Schmid noted on Thursday that most recent U.S. monthly price numbers have been encouraging, adding to his confidence that inflation is on a path to return to the Fed's 2% target. However, he warned the price data could be volatile and called to look for the worst in the data rather than the best.
Schmid also said that if inflation continues to come in low it will be appropriate to adjust the monetary policy stance. "The path of policy will be determined by the data and the strength of the economy," the official added.