Golden Finance reported that Kansas Fed President Schmid hinted that he is not ready to support a rate cut because inflation is above target and the labor market is healthy despite some cooling. In a speech to the Kansas Bankers Association, Schmid said that the recent decline in inflation is "encouraging" and more reports of low price pressures will increase his confidence that inflation is returning to the central bank's 2% target and will therefore be able to lower interest rates. "We are close, but not yet fully there," Schmid said. He did not comment on when the Fed should cut interest rates, saying that "the policy path will be determined by data and economic momentum." Although U.S. non-farm payrolls in July were weaker than expected, Fed officials ignored calls for aggressive action. The market expects the Fed to cut interest rates by 50 basis points in September with a greater than 50% chance. "Overall, the labor market still looks healthy," Schmid said. "Last week's July employment report led many to question this resilience. But it is worth noting that many other indicators show continued strength."