Fed's Schmid: Dissented against rate cut because of continued momentum in economy

  • Comments from Schmid, who voted to hold rates this week
Schmid
  • Has concerns about high and potentially spreading inflation
  • Labor market largely in balance, any stress likely due to structural change that small Fed rate cuts won't address
  • Financial conditions appear easy, nothing to suggest they're particularly tight
  • Lower rates could hurt if Fed's commitment to 2% inflation called into question

He makes a compelling argument. Powell hinted that the December Fed meeting will be a real fight.

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