Fed Governor Lisa Cook said she supported last week’s quarter-point rate cut, describing it as “another gradual step toward normalization.” Cook noted that she views current policy as “modestly restrictive,” which remains appropriate given that inflation is still above target. At the same time, she argued that “downside risks to employment are greater than the upside risks to inflation,” suggesting a tilt toward caution on the growth side of the Fed’s dual mandate.

Cook emphasized that monetary policy is “not on a predetermined path”. She said the economy is at a moment when risks to both sides of the mandate are elevated: keeping rates too high could cause a sharp labor-market deterioration, while cutting too aggressively could risk unanchoring inflation expectations. .

Looking ahead, Cook stressed that each meeting remains a “live meeting,” including December’s. She will base her decision on incoming data and shifts in the economic outlook, particularly regarding labor conditions and inflation persistence.

San Francisco Fed President Mary Daly said she supported last week’s rate cut and will approach the December meeting with “an open mind”. She believed it was “appropriate to take another bit off the policy rate,” while emphasizing that the central bank must now gauge whether the 50 basis points of easing delivered this year are sufficient to guard against further weakness in hiring.

She noted that incoming data, including state-level jobless claims, suggest the labor market is not on a “precipice,” with conditions still stable despite slower momentum. Inflation, she said, is running near 3%, indicating progress but not yet a full return to target.

Daly added that FOMC participants often hold diverse views ahead of meetings, but consensus tends to emerge as new data clarify the outlook.

Chicago Fed President Austan Goolsbee said he remains uneasy about the idea of front-loading rate cuts, citing persistent inflation pressures and an uncertain growth backdrop. Speaking with Yahoo Finance, Goolsbee admitted he is “not decided” going into the December meeting, emphasizing that inflation remains “above target for four and a half years and trending the wrong way.” .

Goolsbee added that the threshold for cutting rates is now higher than at prior meetings. While he acknowledged that interest rates should ultimately fall alongside inflation, he expects them to settle “a fair bit below current levels” only once inflation shows sustained progress toward 2%. His stance aligns with other centrist officials who are reluctant to accelerate rate cuts amid mixed economic signals.

On the labor market, Goolsbee described an unusual environment of “low hiring” and “low firing,” calling the hiring rate one of the economy’s weakest points. Despite slower job creation, he noted that broader employment indicators remain stable.

Fed Governor Stephen Miran cautioned that U.S. monetary policy may already be too restrictive, arguing that the neutral rate sits “quite a ways” below the current stance. Speaking with Bloomberg TV, Miran said his relatively sanguine view on inflation suggests there is “no reason for keeping policy as restrictive” .

Miran also highlighted emerging strains in credit markets as a warning sign that policy may have overshot. He noted that “a series of seemingly uncorrelated credit problems” surfacing across sectors indicates financial stress that was previously masked by strong headline data.

“The longer you keep policy restrictive, the more you run the risk that monetary policy itself causes a downturn,” Miran warned.

Kansas City Fed President Jeffrey Schmid offered a firm defense of his decision to oppose this week’s quarter-point rate cut, arguing that the U.S. economy remains resilient and inflation too high to justify further policy easing.

In a statement, Schmid said the labor market is “largely in balance”, the economy continues to show “momentum,” and policy remains “only modestly restrictive.” On that basis, he judged it appropriate to hold rates steady at this week’s meeting.

Schmid emphasized that monetary policy should continue to “lean against demand growth” to give supply room to expand and relieve price pressures.

The Kansas City Fed chief also highlighted the uneven effects of monetary policy on the Fed’s dual mandate. He noted that current labor market stresses are more structural, driven by technology and demographics, rather than cyclical weakness that rate cuts could effectively address. As such, he questioned the utility of further easing to support employment at this stage.

On the other hand, Schmid warned that even small rate reductions could have “longer-lasting effects on inflation” if markets begin to doubt the Fed’s commitment to its 2% target.

Full statement of Fed’s Schmid here.