Federal Reserve official Schmid said current monetary policy remains "modestly restrictive" and close to a neutral setting, arguing that the stance should be maintained for now because inflation is still running too high. Schmid added that the limited inflationary impact of the United States’ 145% tariff on Chinese imports, which took effect in April, supports keeping rates on hold rather than cutting them. Growth, he said, remains solid, allowing the central bank to be patient before making any adjustments.