A divided Fed faces tough choices ahead of its December meeting—cut rates to support jobs or hold firm to fight stubborn inflation.

Raphael Bostic, president of the Federal Reserve Bank of Atlanta, is retiring at the end of his current term in February, opening up a new seat on the Fed’s interest-rate setting committee at a time that President Donald Trump is seeking to exert more control over the central bank.

Kansas City Federal Reserve President Jeffrey Schmid on Friday said his concerns about "too hot" inflation go well beyond the narrow effects of tariffs alone, in fresh remarks that signaled he could dissent again at the Fed's December meeting should policymakers opt to cut short-term borrowing costs again.

The government shutdown delayed the October CPI inflation report indefinitely, as alternate gauges like the Cleveland Fed's inflation nowcast estimated 2.96% annual inflation.

The departure of Raphael W. Bostic, who has served in the role since 2017, would create a new vacancy at the central bank.

Federal Reserve Bank of St. Louis President Alberto Musalem said officials should move cautiously with further interest rate reductions with inflation running above the central bank’s 2% target.

The regional bank leader plans to step down when his current five-year term expires at the end of next February.

By Anmol Choubey (Reuters) -Gold prices reversed earlier gains on Friday as hawkish comments from U.S. Federal Reserve officials clouded prospects for a December rate cut, although they remained set for a weekly gain supported by wider economic uncertainty.