FED’S SCHMID WARNS RATE CUTS COULD PROLONG INFLATION Fed’s Christopher Schmid says current rates aren’t slowing the economy and keeping inflation near 3% justifies restrictive policy. Productivity gains may support faster growth without fueling prices—but “we are not there yet.” Strong demand still outpaces supply, and transitory price shocks require focus on the Fed’s 2% inflation target. Opportunities exist to reduce bank reserves and shrink the Fed’s balance sheet.(*Walter Bloomberg)