KC Fed's Schmid flags long-end rate pain — SkimNews
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- Jeff Schmid, president of the Kansas City Fed, told Axios on Thursday that the relentless rise in long-term interest rates is starting to create 'friction' among long-market users of credit.
- Schmid specifically pointed to multifamily housing and commercial real estate as sectors already feeling the impact of higher long-end rates.
- The Fed is signaling that the long end of the yield curve — beyond its direct policy control — is now transmitting stress into broader credit markets.
Why it matters: Schmid's comments are notable because the Fed does not directly set long-term rates, yet he is publicly flagging real economic damage from exactly that segment of the curve — suggesting the Fed's own short-rate patience is being undermined by long-end conditions tightening on their own.
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