In a recent address, Kansas City Federal Reserve President Jeff Schmid emphasized that current US interest rates are well-positioned to support the Federal Reserve’s ongoing battle against inflation. Speaking at a conference in Kansas City, Schmid countered President Donald Trump’s persistent calls for rate reductions, stating that the existing policy stance is only slightly restrictive and appropriate given the economic and financial landscape. Schmid, a voting member of the Fed’s influential rate-setting committee, highlighted that he supported last month’s rate cut as a prudent risk-management strategy, particularly in light of signs of a cooling labor market. The Federal Reserve operates under a dual mandate from Congress, tasked with independently addressing both inflation and unemployment through adjustments to its benchmark lending rate. Schmid’s comments sharply contrast with Trump’s frequent criticisms of Fed Chair Jerome Powell and the rate committee for their perceived reluctance to cut rates swiftly. While inflation remains stubbornly above the Fed’s long-term 2% target, Schmid underscored that the central bank must prioritize its credibility on inflation, even as it navigates the delicate balance between inflation and unemployment. Market analysts, citing data from CME Group, predict a 95% likelihood of a quarter-percentage-point rate cut at the Fed’s upcoming meeting, which would adjust the key lending rate to a range of 3.75% to 4.00%.