Kansas City Federal Reserve President Schmid said inflation is too high and indicated that more restrictive monetary policy is needed to bring it back to the 2% target. In a speech, he noted that the economy is performing well aside from inflation, but stressed that his biggest concern is inflation. He pointed out that recent data do not appear to show that current tight policy is succeeding in countering price pressures, and made clear his view that further tightening is necessary for the Fed to achieve its 2% goal.
Hawkish Fed official calls for tighter policy, implying higher rates.
Tighter policy expectations push yields up, lowering bond prices.
