---
title: "Federal Reserve's Schmid: Need to cool inflation through restrictive policies"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/275628008.md"
description: "Kansas City Federal Reserve President Schmid: Prefers to keep interest rates somewhat restrictive. Continuing to cut rates poses the risk that \"higher levels of inflation will persist stubbornly.\" It can reduce reserve requirements and shrink the balance sheet (quantitative tightening). With inflation rates above 2%, demand seems to exceed supply. Due to the tail risks brought by fiscal policies, strong demand is expected. It is crucial to reduce the Federal Reserve's footprint in the financial markets"
datetime: "2026-02-11T15:17:19.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/275628008.md)
  - [en](https://longbridge.com/en/news/275628008.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/275628008.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/275628008.md) | [繁體中文](https://longbridge.com/zh-HK/news/275628008.md)


# Federal Reserve's Schmid: Need to cool inflation through restrictive policies

Kansas City Federal Reserve President Schmid: Prefers to keep interest rates somewhat restrictive.

Continuing to cut rates poses the risk of "higher levels of inflation becoming stubbornly persistent."

Can reduce reserve requirements and shrink the balance sheet.

With inflation rates above 2%, demand seems to exceed supply.

Due to tail risks brought by fiscal policy, strong demand is expected.

It is crucial for the financial markets to reduce the Federal Reserve's footprint

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