Kansas City Fed President Jeffrey Schmid said in a speech today that with the economy still showing momentum, business optimism rising, and inflation remaining above Fed’s 2% goal, it is appropriate to keep monetary policy “modestly restrictive” for now.
Schmid noted that while higher tariffs appear to have had only a limited effect on inflation so far, he sees this as a reason to maintain the current policy stance rather than an opportunity to ease.
He stressed that his view is not a “wait-and-see” approach but rather a data-backed assessment of the need to stay restrictive. In conversations with business contacts, Schmid said growth remains solid and inflation “too high,” reinforcing his position that policy should not be loosened yet.
