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.