Fed's Schmid Says Further Fed Rate Cuts Could Allow Higher Inflation To Persist For Longer; Not Seeing Evidence Current Level Of Interest Rates Is Restraining Economy; Appropriate To Keep Restrictive Monetary Policy With Inflation Close To 3%; Productivity Improvements Could Allow Faster Growth Without Inflation, But 'we Are Not There Yet'; Current Inflation Rate Indicates Still-strong Demand Is Outpacing Improvements In Supply