Federal Reserve (Fed) Bank of Kansas President Jeffrey Schmid made a rare appearance on Wednesday, flagging potential pitfalls on the path toward lower interest rates.

Key highlights

I won't let enthusiasm over rising productivity get ahead of data or commitment to reaching the Fed's goals.

I hope productivity growth can outrun the effects of slowing population growth, and rising fiscal deficits.

Fed rate cuts to date are an acknowledgement of growing confidence inflation is on path to 2% goal.

It remains to be seen how much more the Fed will cut rates, and where they may settle.