Kansas City Federal Reserve President Schmid has opposed the recent decision to cut interest rates, highlighting inflation risks. Schmid expressed concerns that economic growth and investment could increase inflationary pressures, stating that the labor market is balanced and the economy is strong, but inflation remains above the Fed's 2% target. The U.S. Labor Department reported a 3% rise in consumer prices for the year ending in September, marking over four years above the target. Schmid emphasized that businesses in his region are worried about rising costs and that monetary policy should restrain demand growth. He argued that a 25 basis point rate cut would not significantly ease labor market pressures, which are influenced by technological and demographic factors. Schmid warned that a rate cut might undermine the Fed's commitment to its inflation target, potentially affecting inflation expectations. This marks Schmid's first dissent as a Fed official.