Schmid: Inflation remains a key issue for the Federal Reserve, with no clear monetary policy response.

According to ChainCatcher, citing Jinshi, Federal Reserve Chairman Schmid stated on Wednesday that excessive inflation remains a key issue the Fed needs to address, but he did not specify how monetary policy should respond. Schmid said, "I think we still have work to do on inflation," while noting that the employment situation is quite good. He pointed out that the large amount of mortgage-backed securities held by the Fed during its past bond-buying activities continues to depress home borrowing costs, with mortgage rates "likely 75 to 100 basis points lower than they were before."