Fed Rate Cut Sparks Internal Dissent Amid Inflation Concerns
Federal Reserve officials are divided following Wednesday's quarter-point rate reduction, the third consecutive cut this year. Dissent emerged from Chicago Fed President Austan Goolsbee and Kansas City Fed's Jeff Schmid, who argued for maintaining rates amid persistent inflation concerns.
Goolsbee, casting his first dissenting vote since joining in 2023, advocated for delayed action until more economic data becomes available. "I'm one of the most optimistic folks about how rates can go down in the coming year," he told CNBC, projecting deeper cuts than peers anticipate for 2026.
Schmid maintained a hawkish stance, noting inflation remains elevated despite economic cooling. "I view the current stance of monetary policy as being only modestly, if at all, restrictive," he stated, emphasizing ongoing price stability risks.
