Schmid Calls for Tighter Policy to Tame 'Too High' Inflation

Federal Reserve Bank of Kansas City President Jeff Schmid is calling for tighter monetary policy to combat 'too high' inflation. In a recent speech, he emphasized that his primary concern is inflation, and given the current data, it appears that monetary policy is not restrictive enough to address price pressures.

Schmid noted that the economy is performing well, but with the notable exception of inflation, which has surpassed the Fed's 2% target. He stated, 'My primary concern is inflation' and added that 'bringing inflation down to the Fed's two per cent objective will require tighter policy.'

The official did not specify when or by how much he would like the Fed to raise rates, but his comments suggest a shift towards tighter monetary policy. This stance aligns with market expectations, which have been anticipating a rate hike to quell price pressures.