Kansas City Fed President Jeffrey Schmid Cites Inflation Concern to Explain Dissent at FOMC Meeting

11:46 AM EDT, 10/31/2025 (MT Newswires) -- Kansas City Fed President Jeffrey Schmid said Friday in a statement explaining his dissenting vote at this week's Federal Open Market Committee meeting that with the labor market in balance and inflation elevated, he would have preferred no change in the target range for the federal funds rate.

"By my assessment, the labor market is largely in balance, the economy shows continued momentum, and inflation remains too high," Schmid said. "I view the stance of policy as only modestly restrictive. In this context, I judged it appropriate to maintain the policy rate at this week's meeting."

Schmid that that he hears widespread concerns about inflation from business contacts, while financial conditions continue to reflect a policy stance that is only modestly restrictive and consumption remains strong.

"With inflation still too high, monetary policy should lean against demand growth to allow the space for supply to expand and relieve price pressures in the economy," Schmid said.

At the same time, Schmid said that "I do not think a 25-basis point reduction in the policy rate will do much to address stresses in the labor market that more likely than not arise from structural changes in technology and demographics," but could impact the Fed's commitment to lowering inflation toward its 2% goal.

"In the end, inflation is the Federal Reserve's responsibility and within its control, and as I balance the mandate -- and the effectiveness of the Fed's actions in meeting that mandate -- my preference was to hold the policy rate steady at this week's meeting," he concluded.

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