Federal Reserve Bank of Kansas City President: "Current monetary policy stance should be maintained"

Jeffrey Schmid, President of the Federal Reserve Bank of Kansas City, expressed support for keeping interest rates unchanged.

According to Bloomberg on the 12th (local time), President Schmid attended an event held in Oklahoma City, U.S., and said that "inflation is still exceeding the target," adding, "It is appropriate to maintain a moderately restrictive monetary policy for the time being." This effectively expressed his support for the cautious stance of Federal Reserve Chair Jerome Powell.

He also emphasized the impact of tariffs. President Schmid stated, "The Fed cannot offset the effects of high tariffs on prices," and added, "What the Fed can do is monitor increases in demand, provide room for the economy to adjust, and keep inflation on a 2% path." He further commented, "Overall, the impact of tariffs on inflation is expected to be relatively modest," and added, "This should be seen not as a signal for a rate cut, but as a sign that policy is being properly calibrated."