As the new year approaches, the Federal Reserve faces a strong economy and inflation still above the 2% target. Kansas City Fed President Schmid suggested on Thursday that there is a reluctance to cut rates again. In a speech at the Kansas City Economic Club, Schmid stated, "We are currently very close to achieving the dual goals of price stability and full employment," and that "as inflation approaches the target and economic growth shows sustained momentum, I believe we have reached a threshold where the economy neither needs to be restricted nor supported, and policies should be neutral." In the current environment, "interest rates may be very close to long-term levels," Schmid said. He indicated, "I favor gradual adjustments to policy, responding only when the data trend changes persistently." He also mentioned, "The strength of the economy gives us patience."