Several senior Federal Reserve officials have taken a hawkish stance, explicitly opposing a rate cut in December. Boston Fed President Collins stated that the current monetary policy is appropriate, inflation remains above the 2% target, financial conditions are loose, and there is no need for a rate cut in December. Cleveland Fed President Mester reiterated her opposition to a rate cut, expressing concerns that high inflation and loose financial conditions could increase risks. Dallas Fed President Logan said that inflation is still high and showing signs of picking up, with the decline slower than expected, and that she would only support a rate cut if there is evidence of inflation falling more rapidly. Schmid also opposed a rate cut, arguing that a hasty cut could reignite inflationary pressures and undermine the credibility of the inflation target. Internal divisions within the Fed are intensifying, increasing the suspense over a possible rate cut in December.
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Several senior Federal Reserve officials have taken a hawkish stance, explicitly opposing a rate cut in December. Boston Fed President Collins stated that the current monetary policy is appropriate, inflation remains above the 2% target, financial conditions are loose, and there is no need for a rate cut in December. Cleveland Fed President Mester reiterated her opposition to a rate cut, expressing concerns that high inflation and loose financial conditions could increase risks. Dallas Fed President Logan said that inflation is still high and showing signs of picking up, with the decline slower than expected, and that she would only support a rate cut if there is evidence of inflation falling more rapidly. Schmid also opposed a rate cut, arguing that a hasty cut could reignite inflationary pressures and undermine the credibility of the inflation target. Internal divisions within the Fed are intensifying, increasing the suspense over a possible rate cut in December.
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