Fed Members Support Powell: No Quick Rate Cuts Coming
Kansas City Fed President Jeffrey Schmid, a voting member, said the Fed is not rushing to cut interest rates. He explained that inflation is still above the 2% target and the US job market is strong.
“We are in a good spot, but we need very clear data before changing policy,” Schmid said. He added that inflation is “closer to 3% than 2%,” and reducing it further will not be easy. According to him, “the last mile of inflation is pretty hard.”
Cleveland Fed President Beth Hammack, a non-voting member, also gave a similar view. She warned that sticky inflation could block any chance of a rate cut in September.
Powell Stays Firm
These views match with Fed Chair Jerome Powell’s speech at Jackson Hole, where he said no immediate rate cuts are planned. Even though Trump has been pushing for lower rates, Powell and other Fed officials are not ready. Their main focus is still on bringing inflation down and keeping the economy stable.
Impact:
With no quick cuts expected, the US dollar could stay strong. Gold and yen may weaken further, while traders might wait for fresh inflation data before making big moves.
