Federal Reserve Bank of Kansas City President Jeff Schmid warned on Nov. 14 that more interest-rate cuts could drive inflation pressures higher, contrary to market expectations of a December cut. Schmid stated that further cuts may not support the labor market but could fuel inflation beyond the 2% target. The Fed’s dual mandate of price stability and low unemployment is at risk as inflation remains at 3%, above the target. Schmid’s comments have shifted market sentiment, with the likelihood of a December rate cut dropping to 43.6%. Investors are reevaluating growth concerns and potential Fed actions in response.

Read more at Yahoo Finance: Fed official sends strong signal on December interest-rate cut