Fed officials speak out, expressing caution over excessive interest rate cuts.

[Fed officials voice concerns about excessive rate cuts] According to the Wall Street Journal, on Friday local time, four Fed officials expressed concerns about the possibility of rate cuts this week and again in December in different forms, which explains why Fed Chairman Powell stated in the post-decision press conference that a rate cut in December is not a “done deal.” At Wednesday's meeting, only Kansas City Fed President George voted against the decision to cut rates by 25 basis points, explaining in a statement on Friday that this action stemmed from concerns about persistent inflation. Two other officials without voting rights this year—Cleveland Fed President Mester and Dallas Fed President Logan—also hinted that they would oppose a rate cut if they had voting power. Mester explicitly expressed concern that this rate cut deviates too much from the tightening stance needed to contain inflation: “We must maintain a certain degree of restrictive policy to bring inflation back to target.” Although Atlanta Fed President Bostic, who also lacks voting rights this year, supports the 25 basis point cut, he emphasized that the premise is confidence that the policy stance remains tight. Bostic specifically pointed out that amid persistent stubborn inflation across various sectors of the economy, each rate cut makes the rationale for further easing less clear, as interest rates are gradually approaching neutral levels that may not effectively suppress rising prices.