[Federal Reserve Officials Cautious About Further Rate Cuts]
On Friday local time, four Federal Reserve officials expressed concerns about this week's rate cut and the possibility of another rate cut in December. Federal Reserve Chair Jerome Powell emphasized during the press conference following Wednesday's meeting that a December rate cut is not a 'foregone conclusion.'
Kansas City Fed President Esther George cast a dissenting vote against the 25-basis-point rate cut during the meeting, citing concerns over inflation persistence. On the same day, Cleveland Fed President Loretta Mester and Dallas Fed President Lorie Logan stated that they would oppose a rate cut if they had voting rights, arguing that restrictive policies should be maintained to achieve inflation targets.
Atlanta Fed President Raphael Bostic, while supporting the rate cut, stressed the need to ensure that policy remains restrictive. He pointed out that stubborn inflation weakens the case for further easing, as the current interest rate is already approaching a neutral level that may no longer effectively curb inflation.