Fed's Schmid: Dissented against rate cut because of continued momentum in economy

In a statement published on Friday, Federal Reserve (Fed) Bank of Kansas City President Jeffrey Schmid explained he voted in favor of keeping the policy rate unchanged because "the labor market is largely in balance, the economy shows continued momentum, and inflation remains too high."

Key quotes

"Labor market largely in balance, any stress likely due to structural change that small Fed rate cuts won't address."

"Financial conditions appear easy, nothing to suggest financial conditions are particularly tight."

"Policy is now only modestly restrictive and still needs to lean against demand and price pressures."

"Lower rates could hurt if Fed's commitment to 2% inflation target is called into question."

Market reaction

These comments received a hawkish score of 7.0 from FXStreet Fed Speechtracker. At the time of press, the US Dollar (USD) Index was up 0.13% on the day at 99.65.