Jeffrey Schmid, president of the Federal Reserve Bank of Kansas City, has argued that the central bank needs to push interest rates higher to achieve its inflation target.
Schmid reiterated that rising prices remain his primary concern, signaling a continued hawkish posture from within the Fed's leadership ranks.
Schmid's remarks follow similar comments from Minneapolis Fed President Neel Kashkari, who recently emphasized that curbing inflation remains the central bank's top priority.
The comments from Schmid arrive as markets digest a series of dovish and hawkish signals from various Fed officials.
His emphasis on inflation control aligns with the broader narrative that the central bank is not yet ready to ease policy significantly, despite some signs of labor market softening.
This reinforces the view that the Fed will maintain a restrictive stance until there is clearer evidence that price pressures are sustainably under control.
Schmid's remarks follow similar comments from Minneapolis Fed President Neel Kashkari, who recently emphasized that curbing inflation remains the central bank's top priority.