Fed's Jeff Schmid Signals Possible Rate Cut If Inflation Continues To Fall

The Fed last week opted to leave the policy rate in the 5.25%-5.50% range (Credit: AFP)

Jeff Schmid, President of the Kansas City Federal Reserve Bank and one of the central bank's more hawkish voices, said on Thursday that recent economic data has bolstered his confidence that inflation is easing, potentially paving the way for a reduction in the Fed's interest rates.

Speaking at the Kansas Bankers Association's annual meeting in Colorado Springs, Colorado, Schmid said there are "encouraging" signs that inflation is moderating but cautioned that the Fed needs to be vigilant, Reuters reported.