Fed’s Schmid calls for tighter policy to control inflation

Kansas City Federal Reserve President Jeff Schmid said Tuesday that inflation remains a primary concern for the U.S. central bank and indicated his support for policy tightening to address rising prices.

Speaking at an energy conference sponsored by the Dallas and Kansas City Fed banks, Schmid described the current interest rate environment as "fairly accommodative" and said he does not view the policy stance as restrictive.

"I didn't think our rate was restrictive last year, and I believe today it's fairly accommodative," Schmid said. "My attention is where can our policy decisions most affect the inflation trend in the economy today."

Schmid noted there are concerning trends in prices beneath the broader energy story. He said housing is experiencing an "interesting dynamic" but indicated he cannot identify restrictions in other areas of the economy.

The Fed official also predicted that instant payments will surpass digital asset structures in adoption.