Kansas City Fed President Jeffrey Schmid Says Monetary Policy 'Modestly Restrictive,' Where it Should Be

10:42 AM EST, 11/14/2025 (MT Newswires) -- Kansas City Fed President Jeffrey Schmid said Friday that the current stance of monetary policy is "modestly restrictive," which he said is appropriate given continued concerns about inflation.

"By my view inflation remains too high, the economy shows continued momentum, and the labor market-though cooling-remains largely in balance," Schmid said in prepared remarks to a Kansas City Fed energy conference. "Also, I view the current stance of monetary policy as being only modestly restrictive, which is about where I think it should be."

Schmid dissented at the most recent Federal Open Market Committee meeting in October, preferring no change in the Fed's policy rate compared with the 25-basis point reduction that was decided upon.

He said in his remarks that he does not believe further rate reductions will have much of an impact on the slowing labor market but could damage the Fed's efforts to bring inflation down toward its 2% goal.

"This was my rationale for dissenting against the rate cut at the last meeting and one that continues to guide my thoughts as I head into the meeting in December," Schmid said. "Importantly though, my decision in that meeting will be informed by my discussions and information gathering in the coming weeks."

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