Fed Official Signals Reluctance To Cut Rates Amid Strong Economy

According to Odaily, as the new year begins, the Federal Reserve faces a robust economy and inflation that remains above its 2% target. Kansas City Fed President Schmid indicated on Thursday a reluctance to cut interest rates again. Speaking at the Kansas City Economic Club, Schmid stated, "We are currently very close to achieving our dual goals of price stability and full employment." He added, "With inflation nearing the target and economic growth showing sustained momentum, I believe we are approaching a point where the economy neither requires restriction nor support, and policy should be neutral." In the current environment, "interest rates may be very close to long-term levels," Schmid noted. He expressed support for gradual policy adjustments, responding only to sustained changes in data trends. Schmid also mentioned, "The strong economy allows us to be patient."