Schmid: Cutting rates could worsen inflation without helping employment much.

Jan 15, 2026, 6:34:10 PM UTC(4 hours ago)

Impact: Medium

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Schmid: Cutting rates could worsen inflation without helping employment much.
The statement from Schmid concerns the potential impact of cutting interest rates on inflation and employment.
The Federal Reserve has been cutting interest rates, with cuts occurring in late 2025.
The labor market is softening, which is a key factor in the Fed's decision-making.
Some economists believe rate cuts may be preventing deeper damage to the job market but not reigniting hiring.
Schmid's view suggests that further rate cuts could worsen inflation without significantly improving employment.

SCHMID: CUTTING RATES COULD WORSEN INFLATION WITHOUT HELPING EMPLOYMENT MUCH