Fed Official Signals Possible Rate Hike as Inflation Remains Above Target

Federal Reserve Bank of Kansas City President Jeffrey Schmid said Monday that tighter monetary policy may be necessary to bring inflation back down to the central bank's 2% target.

In a speech at a banking conference in Kansas City, Schmid emphasized that inflation remains above the Fed's goal and that policy must remain restrictive until there is clear evidence of a sustained decline.

The recent data showed consumer prices rising at a 3.5% annual rate in March, still well above the Fed's comfort zone.