Fed ‘Chorus’ Comes Out Against Latest Cut, Citing Inflation

Core Viewpoint - Three Federal Reserve officials expressed their opposition to the recent interest rate cut, citing persistent inflation concerns [1][2][3] Group 1: Officials' Opinions - Dallas Fed President Lorie Logan and Cleveland Fed President Beth Hammack preferred to maintain current rates rather than cut them [2][3] - Kansas City Fed President Jeff Schmid also dissented against the rate cut, emphasizing the need to address inflation [2][3][8] - Logan indicated that further rate cuts in December would be challenging without clear evidence of falling inflation or a cooling labor market [4][5] Group 2: Market Reactions - The recent rate cut by the Fed, a quarter percentage point for the second consecutive month, was influenced by concerns over a slowdown in hiring [5] - Following the rate cut announcement, there was a significant adjustment in the bond market, as investors had anticipated another cut in December [6] Group 3: Future Outlook - The upcoming six weeks are expected to feature intense discussions among Fed officials regarding the balance between supporting the labor market and controlling inflation [3] - The debate includes differing views on the neutral rate, which is the interest rate level that neither stimulates nor restrains economic growth [9]