Key facts
- Kansas City Fed President Jeffrey Schmid discussed the Federal Reserve's interest rate options.
- Schmid indicated the choice is between remaining patient or implementing rate hikes.
- The goal of these actions would be to curb inflation.
- Inflation has risen to the three and a half percent range.
- Schmid questioned whether to raise rates by a quarter or two percentage points.
Kansas City Federal Reserve President Jeffrey Schmid indicated on Thursday that the U.S. central bank is contemplating its next move on interest rates. Schmid presented the decision as a choice between maintaining patience with the current policy or opting for rate hikes to bring down inflation. He specifically questioned whether the Federal Reserve should remain patient or consider increasing interest rates by either a quarter or two percentage points. Schmid noted that inflation has recently risen to approximately the three and a half percent range.