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Jeffrey Schmid, president of the Kansas City branch of the US Federal Reserve and a member of the Federal Open Market Committee (FOMC), cited concerns about inflation as the reason he voted against this week's interest rate cut.

"By my assessment, the labor market is largely in balance, the economy shows continued momentum, and inflation remains too high," he said. "I view the stance of policy as only modestly restrictive. In this context, I judged it appropriate to maintain the policy rate at this week’s meeting."

Schmid asserted that he hears widespread concern about cost increases and inflation.

Rising health care costs and insurance premiums are top of mind, he added.

"Inflation has been running above the Fed’s 2 percent objective for more than four years.

"As I have said before, I take small comfort in most measures of inflation expectations having not moved up," he added.