Schmid: Further Rate Cuts Risk Triggering Inflation Surge

Kansas City Federal Reserve President Jeffrey Schmid has warned that additional interest rate reductions could undermine the fight against inflation, potentially triggering a new wave of price increases. His caution comes amidst ongoing debate within the Fed about the appropriate pace of policy normalization. Schmid emphasizes that while current economic data supports recent progress in controlling inflation, further cuts would fail to address underlying labor market weaknesses and could inadvertently rekindle price pressures.