Federal Reserve's Schmid: Need to cool inflation through restrictive policies

Wallstreetcn
2026.02.11 15:17

Kansas City Federal Reserve President Schmid: Prefers to keep interest rates somewhat restrictive.

Continuing to cut rates poses the risk of "higher levels of inflation becoming stubbornly persistent."

Can reduce reserve requirements and shrink the balance sheet.

With inflation rates above 2%, demand seems to exceed supply.

Due to tail risks brought by fiscal policy, strong demand is expected.

It is crucial for the financial markets to reduce the Federal Reserve's footprint

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