News Headline: Fed Officials Maintain Cautious Stance on Interest Rate Cuts

U.S. Fed officials continue to assess interest rate policies under current economic conditions. The presidents of the San Francisco, Minneapolis, and Kansas City Feds have expressed differing approaches regarding interest rate cuts, in light of inflation targets and the state of the labor market. Ahead of upcoming Fed meetings, officials are leaning towards cautious steps.

San Francisco Fed President Daly's assessments San Francisco Fed President Mary Daly emphasized the need for the Fed to continue lowering interest rates when evaluating the U.S. economy. Daly pointed out that current interest rates are not sufficiently restrictive for the economy, while reinforcing that the inflation target is 2%.

Daly highlighted the importance of continuing rate cuts as inflation decreases, warning that otherwise, the labor market could suffer. Last month, the Fed implemented a 50-basis-point rate cut, bringing the policy rate to the 4.75%-5% range.

Minneapolis Fed President Kashkari's statements Minneapolis Fed President Neel Kashkari expects modest short-term rate cuts but noted that potential labor market disruptions could necessitate quicker reductions.

Kashkari indicated that if he observes signs of labor market weakness, he might favor faster cuts in interest rates. He believes that current rates are restraining the economy, stating that rate cuts will be data-driven and emphasizing the importance of maintaining a strong labor market while stabilizing inflation at a 2% target.

Kansas City Fed President Schmid's views Kansas City Fed President Jeffrey Schmid announced his preference for a cautious and deliberate approach to rate cuts. As inflation moves toward the 2% target and the labor market normalizes, Schmid advocates for gradual rate reductions.

Schmid noted the importance of avoiding sudden large cuts to prevent financial market volatility and expressed that orderly and phased rate reductions provide room to observe and evaluate the economy's reactions.

Upcoming Fed meeting expectations In the next Fed meeting scheduled for November 6-7, there is an expectation for a further 25-basis-point cut in the policy rate, currently at the 4.75% - 5.00% range. The Fed officials' careful approach to interest rate policies continues to uphold efforts to maintain economic stability while balancing growth and inflation.