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Fed's Schmid: No Rate Cuts Amid Inflation Concerns

2/12/2026

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Story summary
  • Jeffrey Schmid, president of the Federal Reserve Bank of Kansas City, opposes further interest-rate cuts, warning they could keep inflation elevated.
  • Speaking in Albuquerque, New Mexico, he noted a strong start to 2026 and said persistent inflation signals demand exceeding supply.
  • Schmid added that artificial intelligence could boost economic growth without raising prices, but it remains premature for the Federal Reserve to ease its anti-inflation measures.