Schmidt (elbow) threw two simulated innings at the Yankees' complex in Florida on Wednesday and could be sent on a minor-league rehab assignment soon, per MLB.com.
The right-hander's first simulated session is said to have gone well, and the organization is now deciding whether to have him toss another sim game or to send him out on a rehab assignment. When he does get back into game action, his first outing is expected to cover three innings and 45 pitches. Schmidt hasn't pitched at all this season after suffering an elbow strain during spring training.