KC Fed's Schmid Warns Against Further Rate Cuts

Sees inflation persistence risk if rates lowered further

Published on Feb. 11, 2026

Got story updates? Submit your updates here. ›

Kansas City Federal Reserve President Jeffrey Schmid cautioned on Wednesday that further interest rate cuts could risk persistent inflation, as growth momentum continues and inflation remains elevated.

Why it matters

The Federal Reserve's monetary policy decisions have significant implications for the broader economy, with rate hikes aimed at cooling inflation but also potentially slowing economic growth. Schmid's comments suggest the central bank may be nearing the end of its rate hike cycle, as it seeks to strike the right balance.

The details

Schmid stated that the Fed's current policy rate of 3.50%-3.75% is "arguably no longer restraining activity all that much, if at all." With growth showing momentum and inflation still high, he indicated he does not see a need for further rate cuts, warning that doing so could risk prolonging elevated inflation.

  • Schmid made these comments on Wednesday, February 11, 2026.

The players

Jeffrey Schmid

The president of the Federal Reserve Bank of Kansas City.

Got photos? Submit your photos here. ›

What they’re saying

“With growth showing momentum and inflation still hot, I'm not seeing many”

— Jeffrey Schmid, President, Federal Reserve Bank of Kansas City (Seeking Alpha)

The takeaway

Schmid's remarks suggest the Federal Reserve may be nearing the end of its rate hike cycle, as it seeks to balance cooling inflation without excessively slowing economic growth. His warning against further rate cuts underscores the central bank's delicate balancing act in its ongoing efforts to tame persistent inflation.