BlockBeats News, October 7th: Kansas City Fed President Esther George said on Monday that she is inclined to not further cut interest rates. She stated that when the Fed is seeking a balance between the dual risks of policy being too tight or too loose, it should continue to focus on the risk of high inflation. George supported the Fed’s decision to cut rates by 25 basis points in September, describing it as appropriate risk management against a cooling labor market backdrop. However, she pointed out that various indicators show that the overall employment market remains healthy, while inflation remains high. Service sector inflation has been stable at around 3.5% in recent months, well above the Fed’s 2% inflation target.
“A concerning sign is that the scope of price increases is also expanding,” George said, pointing out that as of August, nearly 80% of categories in the official inflation statistics showed price increases, up from 70% at the beginning of the year. She added, “Overall, I expect the impact of tariffs on inflation to be relatively modest, but I believe this indicates that the policy is appropriately calibrated rather than suggesting a significant policy rate cut is warranted.” (FXStreet)
