Fed's Schmid Calls for Restrictive Rates to Curb Inflation

Kansas City Fed President says rates should remain 'somewhat restrictive' to address persistent price pressures.

Published on Feb. 11, 2026

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Federal Reserve Bank of Kansas City President Jeff Schmid said the US central bank should hold interest rates at a 'somewhat restrictive' level, as he expressed continued concerns over inflation that remains too high.

Why it matters

Schmid's comments signal the Fed's resolve to keep monetary policy tight until inflation is brought under control, even as some policymakers have hinted at potential rate cuts later this year. His stance reflects the central bank's ongoing battle against stubbornly high prices.

The details

In prepared remarks for an event in Albuquerque, New Mexico, Schmid said 'further rate cuts risk allowing high inflation to persist even longer.' The Kansas City Fed president's remarks suggest the central bank is unlikely to pivot away from its restrictive policy anytime soon as it seeks to cool demand and bring inflation back to its 2% target.

  • Schmid made these comments on February 11, 2026.

The players

Jeff Schmid

President of the Federal Reserve Bank of Kansas City.

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What they’re saying

“In my view, further rate cuts risk allowing high inflation to persist even longer.”

— Jeff Schmid, President, Federal Reserve Bank of Kansas City (Bloomberg)

What’s next

Schmid's comments suggest the Fed is likely to maintain its restrictive monetary policy stance in the coming months as it continues to battle high inflation.

The takeaway

Schmid's remarks underscore the Fed's commitment to keeping interest rates elevated until it is confident inflation has been brought under control, even as some policymakers have hinted at potential rate cuts later this year.