Jeffrey Schmid, president of the Federal Reserve Bank of Kansas City, said on the 27th that the current level of the Fed's policy rate is not restrictive, suggesting he continues to support raising interest rates to bring inflation back to the 2% target. Schmid, attending the Jackson Hole Economic Symposium, which began that day in Wyoming, told CNBC, "Inflation is persistent and elevated. We need to continue to find ways to bring it back to the 2% target," adding, "I don't know what the current level of the policy rate is restraining."
Fed official signals support for rate hikes, implying higher policy rate.
Rate hike expectations push long-term yields up, lowering bond prices.
