Headline: Fed/Schmid: Advocating a Cautious and Informed Approach to Interest Rate Cuts

Kansas City Fed President Jeffrey Schmid expressed his preference for a "cautious and measured" approach to interest rate cuts as inflation progresses towards the Fed's 2% target and the labor market normalizes. Schmid stated, "While I support reducing the restrictiveness of policy, my preference is to avoid overly large moves considering the uncertainty about the ultimate goal of policy and my desire to avoid contributing to financial market volatility. Gradually lowering interest rates will allow time to observe the economy's response to our rate adjustments and give us the space to evaluate at what level interest rates neither constrain nor support the economy."

Schmid did not specify how fast or by how much he thinks the Fed should lower rates, but his remarks suggest he believes the central bank doesn't need to act too aggressively in this regard. "My belief is that a cautious and gradual approach to policy adjustments is most suitable for this uncertain environment," he added.