Federal Reserve Bank of Kansas City President Jeff Schmid said monetary policy may not be tight enough, calling inflation "too high" and arguing that returning it to the Fed's 2% target will require "tighter policy." The average 30-year fixed mortgage rate climbed for a fifth straight week to 6.69% as of August 6, its highest level since July 2025, according to Freddie Mac. The Fed held its benchmark rate at 3.5% to 3.75% at its latest meeting, while three officials voted for a hike. The 10-year Treasury yield recently reached 4.65%, up sharply from 3.97% before the U.S.-Iran conflict began in February, according to the Associated Press. Consumer prices were 3.5% higher in June than a year earlier, with energy prices surging 15.7% and gasoline prices jumping 26.7%, according to the Bureau of Labor Statistics.
JPMorgan Chase & CoFed official says policy may need to tighten further, implying higher rates.
Fed official says policy may need to tighten further, implying higher yields.
