Fed's Schmied: Further rate cuts may have a lasting impact on inflation.

PANews, November 14 news, Fed's Schmied stated that further rate cuts may have a lasting impact on inflation. The cooling of the labor market may reflect structural changes. There is a greater tendency to focus on the overall inflation rate when formulating policies. The Fed may also shift its balance sheet portfolio towards short-term securities. Inflation is overheating, the labor market is cooling, but overall remains balanced. My concerns about inflation go far beyond tariff issues. I will closely monitor the labor market for signs of more significant deterioration. The Fed's policy is slightly tightening, which is exactly the state it should be in. There is no room for complacency regarding inflation expectations. I support the decision to stop reducing the Fed's balance sheet. The reasons for my dissenting vote in October still guide me until I make my December decision. Financial markets and the real economy do not show signs of excessive tightening.