Federal Reserve official Schmid said short-term interest rates may be too accommodative while inflation remains above the Fed’s 2% target, adding that the current rate level has not restrained the U.S. economy. He said the midterm elections will not affect the central bank’s decision at its October meeting. Fed policymakers voted in July to keep rates at 3.5% to 3.75%, with three officials dissenting in favor of a hike. Meeting minutes showed support for higher rates among several officials, including some nonvoting members, while others said further tightening could be needed if inflation fails to decline. Schmid also rejected claims that the Fed’s credibility had been damaged by a poorly received July press conference by Fed Chair Wosh, which triggered a strong reaction in bond markets.