Kansas City Fed president says current US interest rates are not tight enough to tame inflation

Jeff Schmid, president of the Federal Reserve Bank of Kansas City, said in a speech at a Fed event in Omaha that he does not view current US monetary policy as restrictive, and called for tighter policy and further interest rate increases to bring inflation back to the Fed's 2 percent target. According to Arzdigital, the remarks came after the Federal Reserve held its rate steady at 3.50 to 3.75 percent last week, a decision three officials dissented from, seeking a 0.25 point increase. By contrast, Philadelphia Fed president Anna Paulson holds a more dovish view, judging current policy to be somewhat restrictive already. Data from the CME FedWatch tool show traders assign a 56.9 percent probability to another rate increase in September.