Fed’s Schmid Says Policy Should Be Restrictive to Curb Inflation

Federal Reserve Bank of Kansas City President Jeff Schmid said interest rates should stay at a level where they continue to put some pressure on the economy so that inflation can cool further.

“With inflation pressures still evident, my preference would be to keep monetary policy modestly restrictive,” Schmid said Thursday in remarks prepared for an event in Kansas City.

Federal Reserve Bank of Kansas City President and CEO Jeffrey Schmid

Photographer: Kent Nishimura/Bloomberg

“And while the labor market has cooled, some cooling is likely necessary to keep the inflation outlook from worsening,” he said.

Policymakers lowered rates at each of their last three meetings to close out 2025. Schmid dissented against the ...