🤑 Fed’s Tightrope: Schmid’s Inflation Angst vs. Rate Cut Circus 🌪️

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Ah, the tormented soul of Jeffrey Schmid, Kansas City Fed’s high priest of monetary restraint, writhes in the shadow of inflation’s relentless embrace. “No more rate cuts!” he cries, his voice a dagger in the heart of market optimists. October’s FOMC meeting looms like a specter, and Schmid, ever the cautious Cassandra, warns of the abyss.

 

In the labyrinth of financial folly, Schmid stands as a sentinel, his brow furrowed against the siren song of further rate cuts. “Inflation, thou art a harlot!” he declares, his words dripping with the gravitas of a man who has stared into the void of unchecked price hikes. 🤑

The markets, ever fickle, whisper of a 25-basis-point cut, their greed cloaked in the garb of expectation. But Schmid, that stoic guardian of fiscal prudence, retorts: “Nay! The beast of inflation is not yet tamed!” His stance, a beacon in the fog of economic uncertainty, suggests the Fed may yet resist the temptations of easy money. 🌪️

Schmid’s Soliloquy: The Tragedy of Restraint

“Restrictive, yet appropriate,” Schmid muses, his tone that of a man bearing the weight of the world. “Inflation, thou art too high, and further cuts would be a pact with the devil!” He speaks of demand, that fickle mistress, and warns that to stoke her flames is to court disaster. 🔥

“Reduce demand, lest we be consumed!” he proclaims, his voice echoing through the halls of financial wisdom. Aggressive cuts, he warns, are but a poisoned chalice, their allure a mirage that leads to the desert of spiraling prices. 🏜️

Inflation or Labor: The Fed’s Tragic Choice

Schmid, ever the tragedian, ponders the Fed’s dual mandate-a tightrope walk between stable prices and full employment. “Inflation, thou art my first love,” he confesses, yet acknowledges the labor market’s cooling embrace. His September vote, a mere 25-basis-point cut, was but a “risk-management strategy,” a cautious step in the dance of economic policy. 💃

“Balance, my dear Fed, is the key,” he intones, his words a sermon to the choir of central bankers. Yet, he warns, to tilt too far toward labor is to invite inflation’s wrath, a tempest that could engulf us all. 🌩️

Data Delays: A Farce in Three Acts

Ah, the government shutdown, that absurd comedy of errors, has robbed the Fed of its precious data. “Where are thy numbers, O absent bureaucrats?” Schmid laments, his patience worn thin. Yet, he vows, the Fed shall soldier on, guided by the flickering light of alternative data. 🕵️♂️

“Flexibility is our shield,” he declares, his resolve unshaken. “We shall adjust, adapt, and persevere, for the economy demands no less.” 🛡️

As the FOMC meeting draws nigh, the odds of a rate cut stand at 94.6%, a number that mocks Schmid’s caution. Yet, he remains steadfast, a bulwark against the tides of inflation. “Control, not stimulus, is our mantra,” he proclaims, his words a challenge to the crypto markets and traditional financiers alike. 📉

News: The probability of a 25-basis-point Fed rate cut in October has dropped to 94.6%

On October 7, according to CME’s “FedWatch” data, the probability of the Federal Reserve keeping rates unchanged in October is 5.4%, while the probability of a 25 bps rate cut is…

– Crypto Insider, Scandal, News (@CryptoWalletBNB)

And so, the drama unfolds, a tale of caution, greed, and the eternal struggle against inflation’s siren call. Will Schmid’s wisdom prevail, or shall the markets have their way? Only time, that merciless judge, will tell. ⌛

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2025-10-07 15:56