Live Updates > Live Update Details
2025-12-12 23:00:08
[Kansas City Fed President Schmid: Inflation Still Overheated, Opposes This Week's Rate Cut] (1) Kansas City Federal Reserve President Jeffrey Schmid clearly stated that he opposes the Fed's decision to cut interest rates by 25 basis points this week. His core reason is that inflation is still "overheated," and monetary policy needs to maintain a moderately tight stance in order to effectively control the inflation level. (2) After the Fed's quiet period ended, Schmid stated in a statement: "What I see now is an economy with momentum and overheated inflation, which suggests that the policy restraint is not excessive." It is understood that the Fed adjusted the benchmark policy rate to a range of 3.5% to 3.75% on Wednesday with a vote of 9 in favor and 3 against. (3) In this interest rate decision vote, Chicago Federal Reserve President Goolsby and Schmid were in agreement, both voting to maintain the existing policy rate unchanged; while Fed Governor Milan again voted against it, advocating for a direct 50 basis point cut in the benchmark rate. (4) Schmid further stated that, in his view, the relevant market environment has not changed significantly since he opposed the rate cut in October: inflation remains above the policy target and the labor market is "roughly balanced".
