Fed's Schmid says more rate hikes needed despite higher yields

Investing.com -- Kansas City Federal Reserve President Jeff Schmid said Tuesday that the central bank needs to increase its policy rate further to bring down inflation, even as higher long-term bond yields put pressure on some parts of the economy.

Speaking at a regional economic event in Oklahoma, Schmid acknowledged that elevated bond yields may be pushing up borrowing costs and causing weakness in certain sectors. The Fed focuses on the short-term rate, and more action is required, he said.

Schmid does not have a vote on interest rate policy this year.

You May Also Be Interested In

• Freedom Broker Upgrades Mondelez International (MDLZ) to Buy
• SPDR S&P 500 ETF Trust (SPY) call put ratio 1 call to 1.1 puts
• University Bancorp acquires remaining 20% of UIF for $15.2M