Fed’s Schmid Says Modestly Restrictive Policy Still Appropriate

Federal Reserve Bank of Kansas City President Jeff Schmid said he thinks inflation risks are marginally higher than risks to the labor market, though monetary policy is in a good place as policymakers consider an interest-rate adjustment next month.

“As you get closer to the optimum dual mandate numbers it actually becomes more difficult to make decisions on the margins relative to where that policy rate should go,” Schmid said in a Bloomberg Television interview aired on Thursday.

Schmid spoke at the Jackson Lake Lodge in Grand Teton National Park, where later Thursday he will kick off his bank’s annual ...