Fed Official Calls for Tighter Policy Amid High Inflation Concerns

Federal Reserve Bank of Kansas City President Jeff Schmid is calling for tighter monetary policy to address inflation concerns.

In a recent speech, Schmid stated that the economy appears to be performing well except for high inflation levels, which he considers his primary concern.

He emphasized that recent data suggests monetary policy has not been restrictive enough to combat price pressures, and therefore, tightening is necessary to bring inflation down to the Fed's 2% target.

Schmid's remarks come after last week's Federal Open Market Committee meeting, where officials voted to keep interest rates steady amid concerns about high inflation. Three committee members had voted in favor of raising rates to quell price pressures.

The official cautioned against dismissing inflation caused by supply shocks and noted that recent relief from higher energy prices has been short-lived due to ongoing global tensions.