Fed official warns inflation still ‘too hot’ ahead of December meeting

On 14 November 2025, Federal Reserve President Jeffrey Schmid said inflation remains persistently high and that monetary policy is already “modestly restrictive”. Schmid dissented from the Fed’s recent rate cut setting the funds rate at 3.75-4.00%, cautioning that further reductions could jeopardise the bank’s 2 % inflation goal. His remarks raise the stakes for the 9-10 Dec policy meeting and ripple beyond the US — emerging-market currencies and bond yields may feel the heat.  With global interest-rate pathways unclear, markets will scan the upcoming US CPI and hiring data for fresh clues.