Central Banks
Fed’s Schmid Rejects Preemptive Rate Cuts, Favors ‘Patient’ Approach
- Kansas City Fed leader needs clear, convincing evidence to cut
- Fed officials need to see evidence inflation headed to 2% goal
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A slew of Federal Reserve officials emphasized Friday that there is no urgency to lower interest rates, pointing to still-elevated inflation and a robust labor market.
That included comments from both the Boston Fed’s Susan Collins as well as San Francisco’s Mary Daly. Atlanta’s Raphael Bostic repeated his view for one rate cut toward the end of the year, and Kansas City’s Jeffrey Schmid noted he prefers a “patient” approach to reductions.