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Fed Official Supports Restrictive Interest Rates to Tackle Inflation

The discussion emphasizes the need for a restrictive monetary policy to control inflation, even as...
Key Metrics

11.31

Heat Index
  • Impact Level
    Medium
  • Scope Level
    National
  • Last Update
    2026-01-15
Key Impacts
Positive Impacts (2)
US Dollar Index (DXY)
US 10-Year Treasury Bond Prices
Negative Impacts (8)
High-Yield Corporate Bond Index
Real Estate Investment Trusts (REITs)
Gold
Technology Growth Stocks
Utilities Sector
Homebuilder Equities
Total impacts: 10 | Positive: 2 | Negative: 8
Event Overview

The discussion emphasizes the need for a restrictive monetary policy to control inflation, even as the labor market cools. The argument is that cutting interest rates would not boost employment and that economic growth is influenced by structural factors. The focus is on maintaining pressure through higher interest rates to prevent inflation from escalating.

Collect Records
Fed Official Advocates for Maintaining Restrictive Interest Rates to Curb Inflation
2026-01-16 02:48

Fed official Schmid stated that interest rates should be kept at a level that continues to pressure the economy in order to further reduce inflation. Despite a cooling labor market, maintaining moderately restrictive monetary policy is necessary to prevent inflation from worsening. He believes that further interest rate cuts will not stimulate hiring, and the slowdown in growth is mainly driven by structural factors such as technology and immigration policies. Lowering interest rates may have a lasting impact on inflation and questions its effectiveness in repairing the labor market.

Total records: 1
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