Fed’s Schmid stresses the importance of monitoring inflation risks and advocates against further interest rate cuts

On October 7, Kansas City Fed President Schmid emphasized avoiding further interest rate cuts, citing inflation risks. He noted that most inflation categories are rising, with services inflation notably stable at 3.5%, above the Fed’s target.

Schmid referenced the necessity of a recent 25 basis point cut while affirming the health of the job market. He believes that the impact of tariffs on inflation will be modest, reinforcing the appropriateness of current policy.