Federal Reserve Bank of Kansas City President Jeffrey Schmid has expressed his support for a more gradual approach to reducing interest rates due to ongoing uncertainty about the appropriate level for cuts.
Schmid believes that a "more normalized" policy cycle is necessary, with modest adjustments aimed at promoting economic growth, stable prices, and full employment.
He suggests that a slower pace of rate reductions would allow the Federal Reserve to determine a neutral policy level that neither hampers nor stimulates the economy.
Schmid's comments reflect a cautious stance as the central bank deals with the complexities of the current economic conditions.