PANews reported on October 7 that Kansas City Fed President Schmid said on Monday he favors not cutting interest rates further, saying the Fed should remain mindful of the risk of excessive inflation as it navigates the dual risks of overly tight and overly accommodative policy. Schmid supported the Fed's decision to cut interest rates by 25 basis points in September, calling it appropriate risk management amid a cooling labor market. However, he noted that various indicators suggest the overall job market remains healthy, while inflation remains excessively high. Services inflation has stabilized at around 3.5% in recent months, well above the Fed's 2% inflation target. "A worrying sign is that the breadth of price increases is also widening," Schmid said, noting that as of August, nearly 80% of the categories in official inflation statistics had seen price increases, up from 70% at the beginning of the year. He added: "Overall, I expect the impact of tariffs on inflation to be relatively modest, but I view it as a sign that policy is appropriately calibrated, rather than a call for a significant cut in the policy rate." (Jinshi)