As the Federal Reserve enters the new year facing a strong economy and inflation that remains above its 2 percent target, Kansas Fed President Schmid signaled on Thursday that he was reluctant to cut interest rates again. Speaking at the Economic Club of Kansas City, Mr. Schmid said that "we are now very close to achieving our dual objectives of price stability and full employment" and that "with inflation close to target and growth showing sustained momentum, I believe we are approaching the point where the economy needs neither restraint nor support and that policy should be neutral." In the current environment, "interest rates are likely to be very close to their long-term levels," Mr. Schmid said. "I am in favor of gradual policy adjustments that will only respond if the tone of the data continues to change," he said. "The strength of the economy makes us patient," he added.