Fed FOMC Member Explains Opposition to Rate Cut: Inflation Risk Still Too High, Should Prudently Wait for More Information

By: theblockbeats.news|2025/12/12 14:16:04
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BlockBeats News, December 12: Today, a Federal Reserve voter explained why he dissented at this month's interest rate meeting.

Chicago Fed President Evans stated that the reason for casting a dissenting vote this week was to wait for more economic data to determine whether the impact of tariffs on inflation is only temporary. Almost all the business people and consumers he has recently encountered in his district have cited prices as a major concern, so he feels a more cautious approach is to wait for more information. However, Evans still optimistically believes that interest rates could drop "quite substantially" next year.

Kansas City Fed President George said that inflation remains too high, economic growth momentum continues to be strong, and although the labor market has cooled somewhat, it remains broadly balanced. He believes that the current monetary policy stance, even if it has a tightening effect, is only slightly restrictive.

Philadelphia Fed President Purser, who will have voting rights in 2026, said the labor market is "under pressure but not collapsing," and monetary policy is somewhat restrictive, although recent easing policies will provide some cushion for the labor market. The Fed will assess how developments such as tariffs and artificial intelligence will impact the economy. If the economy experiences high growth due to AI-driven productivity boom, the necessary policy response will be different from a situation with risks of high inflation.

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