Fed’s Schmid is speaking and says:

• Currently Fed is close to meeting its mandates, but policy must look forward

• Rate cut was appropriate to offset risks to the labor market

• Recent data points to rising risks to job market

• Inflation is still too high, current job market largely in balance

• Fed policy is “slightly restrictive,” which is the right place to be

• Going forward will be data dependent on monetary policy choices

• Bank supervision role is important for broader mission

Schmid’s comments leaned slightly dovish. While acknowledging that inflation remains too high, he characterized policy as only “slightly restrictive” and in the right place for now. He justified the recent rate cut as appropriate to offset rising risks to the labor market and noted that the Fed is close to meeting its mandates, though it must remain forward-looking.

His emphasis on balancing inflation concerns with emerging labor market risks, along with a data-dependent stance, signals a tilt toward caution on tightening and openness to further support if conditions worsen.

Schmid is the president of the Kansas City Fed and is a current voting member on the FOMC board.