Federal Reserve officials offered diverging signals on the U.S. interest-rate outlook, underscoring the policy debate ahead of the Federal Open Market Committee’s autumn meetings. Atlanta Fed President Raphael Bostic said he still expects one quarter-point rate cut before year-end, reiterating the projection he made in June. Speaking at a Metro Atlanta Chamber event on Thursday, Bostic added that, if inflation continues to ease, the federal-funds rate could move “closer to neutral” by 2026. He cautioned, however, that recent labor-market data are “potentially troubling,” and stressed that any forecast now carries a wide confidence band. Bostic is not a voting member of the FOMC this year. Kansas City Fed President Jeffrey Schmid, who votes on policy in 2025, signaled reluctance to join the market’s expectation for a cut at the September meeting. In a CNBC interview from the Jackson Hole symposium, Schmid said officials will need “very definitive data” before lowering borrowing costs and argued that inflation remains “closer to three than two” percent, warning that “the last mile” back to the 2% goal could be costly. The remarks highlight a growing split among policymakers: some see room to begin easing as inflation cools, while others want firmer evidence that price pressures and employment conditions are sustainably aligned with the Fed’s targets before adjusting rates.