Schmid Calls for Tighter Monetary Policy to Combat Elevated Inflation

Federal Reserve Bank of Kansas City President Jeff Schmid has called for tighter monetary policy to combat 'too high' inflation, which he believes is a pressing concern.

In a speech delivered before an event on farming issues, Schmid emphasized that while the economy is performing well overall, the notable exception is the elevated level of inflation. He stated, 'My primary concern is inflation,' and noted that recent data suggests monetary policy has not been restrictive enough to counteract price pressures.

Schmid did not specify when or by how much he thinks the Fed should raise interest rates, but stressed that bringing inflation back down to the 2% target will require tighter policy. This view is in line with other Fed officials who have signaled an openness to raising rates to quell price pressures.

The official cautioned against ignoring supply shocks and warned that recent relief from higher energy prices may be short-lived due to ongoing geopolitical tensions.