Core Viewpoint - A growing number of Federal Reserve officials express a preference for holding interest rates steady due to concerns about high inflation, indicating that further rate cuts may not be imminent [1][2]. Group 1: Federal Reserve Officials' Opinions - Kansas City Fed President Jeff Schmid emphasized that he is more concerned about inflation being "too high" than the current state of the job market, advocating for no rate cuts [1][2]. - Schmid stated that a 25-basis-point reduction in the policy rate may not effectively address labor market stresses, which he attributes to structural changes rather than monetary policy [2]. - Dallas Fed President Lorie Logan and Cleveland Fed President Beth Hammack also indicated a preference for holding rates steady, supporting Fed Chair Jerome Powell's view that another cut in December is not guaranteed [2]. Group 2: Inflation Data - The Consumer Price Index (CPI) for September recorded an inflation rate of 3%, slightly below expectations but an increase from 2.9% in August [3]. - The core CPI, which excludes food and energy prices, also rose to 3% in September, down from 3.1% in the previous month [3]. - The Personal Consumption Expenditures (PCE) index, the Fed's preferred inflation gauge, was estimated by Powell to be 2.8% based on CPI data, which was not released due to the government shutdown [4]. Group 3: Rate Decisions and Concerns - The Fed voted to lower its benchmark interest rate by 25 basis points for the second consecutive meeting, with Schmid dissenting in favor of holding rates steady [4]. - Atlanta Fed President Raphael Bostic, while supporting the quarter-point rate cut, expressed concerns about inflation remaining a significant issue that needs to be addressed to reach the 2% target [5][6].