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Fed's Schmid: High Inflation Demands Action, Job Market Stable

2/25/2026

Summary

Story summary

Jeffrey Schmid, president of the Federal Reserve Bank of Kansas City, said high inflation remains a significant issue requiring action.
He said employment levels are satisfactory.
He did not specify how monetary policy should adapt to these conditions.
Schmid criticized last year's rate cuts aimed at supporting a weakening job market while controlling inflation.
He noted that the Fed's balance sheet, with mortgage bond holdings, keeps borrowing costs lower.

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Story summary

Jeffrey Schmid, president of the Federal Reserve Bank of Kansas City, said high inflation remains a significant issue requiring action.
He said employment levels are satisfactory.
He did not specify how monetary policy should adapt to these conditions.
Schmid criticized last year's rate cuts aimed at supporting a weakening job market while controlling inflation.
He noted that the Fed's balance sheet, with mortgage bond holdings, keeps borrowing costs lower.