Live Updates > Live Update Details
2025-11-01 02:01:46
According to reports, on Friday local time, four Federal Reserve officials expressed concerns in different forms about this week's rate cut and the possibility of another rate cut in December. This explains why Fed Chairman Powell stated in the post-decision press conference that a December rate cut was not "a certainty." At Wednesday's meeting, only Kansas City Fed President Schmid voted against the decision to cut rates by 25 basis points. In his Friday statement, he explained that his opposition stemmed from concerns about sticky inflation. On the same day, two other officials without voting rights this year—Cleveland Fed President Hamack and Dallas Fed President Logan—also hinted that they would have opposed the rate cut if they had voting rights. Hamack explicitly stated his concern that the rate cut deviated too far from the tightening stance aimed at curbing inflation, saying, "We must maintain a certain level of restraint in policy to bring inflation back to our target." Atlanta Fed President Bostic, who also has no voting rights this year, supported the 25-basis-point rate cut, but emphasized that the prerequisite was that he was certain the policy stance remained tight. He specifically pointed out that with persistent and stubborn inflation in various sectors of the economy, each rate cut makes the rationale for further easing less clear, as interest rates are gradually approaching a neutral level that is unlikely to effectively curb price increases.
