Kansas City Fed President Jeff Schmid, an FOMC voter this year, prefers keeping rates where they are: "I see no possibility that we will know the effect of the tariffs on prices, either as a one-off shock to the price level or a persistent inflation impetus, over the next few months. Also, I promise that you will not hear me talking about inflation excluding tariffs, which I think is neither a meaningful nor a measurable concept." "I am anticipating a relatively muted effect of tariffs on inflation, but I view that as a sign that policy is appropriately calibrated rather than a sign that the policy rate should be cut." "With the economy still showing momentum, growing business optimism, and inflation still stuck above our objective, retaining a modestly restrictive monetary policy stance remains appropriate for the time being." "While monetary policy might currently be restrictive, it is not very restrictive." "Given recent price pressures, a modestly restrictive stance is exactly where we want to be." "With stock prices near record highs and bond spreads near record lows, I see little evidence of a highly restrictive monetary policy." https://www.kansascityfed.org/speeches/the-federal-reserve-and-outlook-for-the-economy-and-monetary-policy/(Nick Timiraos)