Fed's Schmid Says Inflation Is Too Hot; Prefer To Keep Monetary Policy Modestly Restrictive; Cutting Rates Could Worsen Inflation Without Helping Employment Much; Inflation A Top Concern Among Business Contacts; December CPI Consistent With Close-To-3% Inflation; Monetary Policy Is Currently Not Very Restrictive, Economy Shows Momentum; Labor Market Stresses Are Structural, Rate-cutting Won't Patch Them Over; Tax Policy, Deregulation Likely To Boost Investment, Spending, Demand