Kansas City Fed President Schmid expresses opposition to interest rate cuts amid inflation concerns

Kansas City Fed President Schmid voted against interest rate reductions, citing inflation concerns. He noted that the economy shows continued strength, with inflation reported at 3%, significantly above the Fed’s target.

Schmid emphasized that businesses worry about rising costs and suggested that current monetary policy should remain mildly restrictive. He expressed skepticism about how a 25 basis point cut would impact labor market pressures.