Back to today’s briefing

Story perspectives

Federal Reserve's Schmid Warns: Inflation Risks Persist Amid Rate Cuts

10/7/2025

35 5

Summary

Story summary

Jeff Schmid, President of the Federal Reserve Bank of Kansas City, urges inflation-fighting credibility as services inflation stays above 2%.
He remains reluctant to cut rates, citing inflation risks, yet backed the 25-basis-point cut due to a cooling labor market.
Inflation breadth is broadening, with 80% of categories rising, up from 70% earlier this year, and AI-driven investment supporting momentum.

1 of 1

Story summary

Jeff Schmid, President of the Federal Reserve Bank of Kansas City, urges inflation-fighting credibility as services inflation stays above 2%.
He remains reluctant to cut rates, citing inflation risks, yet backed the 25-basis-point cut due to a cooling labor market.
Inflation breadth is broadening, with 80% of categories rising, up from 70% earlier this year, and AI-driven investment supporting momentum.