Federal Reserve Bank of Kansas City Jeffrey Schmid advocated on Monday for the Board of Governors to exercise patience, observing the economy's response to the implemented policy tightening, and awaiting compelling evidence indicating success in fighting inflation before starting to cut rates.
In a speech given at The Economic Club in Oklahoma City, he warned that "with inflation running above target, labor markets tight, and demand showing considerable momentum, my own view is that there is no need to preemptively adjust the stance of policy."
Talking about "too high inflation," he noted that although monetary policy measures implemented since 2022 have made inflation decrease "significantly," the US is not "out of the woods yet."
