Fed’s Schmid Says Restrictive Rates Needed to Cool Inflation

Kansas City Fed President Jeffrey SchmidPhotographer: David Paul Morris/Bloomberg

Federal Reserve Bank of Kansas City President Jeff Schmid said the US central bank should hold rates at a “somewhat restrictive” level, as he expressed continued concerns over inflation that remains too high.

“In my view, further rate cuts risk allowing high inflation to persist even longer,” Schmid said Wednesday in prepared remarks for an event in Albuquerque, New Mexico.