According to Jinshi Data, Kansas Fed President Schmid said in a speech at the Kansas City Economic Club that the Fed is currently close to achieving its goals of price stability and full employment. As inflation approaches the target and economic growth shows continued momentum, Schmid believes that policy should remain neutral.
Schmid noted that in the current environment, interest rates are likely to be very close to long-term levels. He favors gradual policy adjustments and will only respond if the tone of the data changes persistently. He also said the strong performance of the economy gives the Fed patience.