Kansas City Fed President Schmid said Monday he favors not cutting interest rates further, saying the Fed should remain vigilant to the risk of excessive inflation as it navigates a balance between 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, with service sector inflation stabilizing 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 were experiencing 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 this as a sign that policy is appropriately calibrated, rather than a call for a significant cut in the policy rate." (Jinshi)