Fed’s Schmid: Inflation is too hot.

Federal Reserve Bank of Kansas City President Jeffrey Schmid emphasized concerns about inflation during a recent speech. He argued against cutting interest rates, suggesting that such actions could exacerbate the inflation problem, which remains high. Schmid stated that while the market may anticipate rate cuts, the Federal Reserve must take necessary measures to suppress inflation. This highlights the ongoing inflationary pressures in the economy. If interest rates were cut, there’s a significant risk of renewed inflation acceleration. As such, market participants should remain cautious, particularly regarding assets sensitive to interest rate changes, implying that investment strategies may need reevaluation.