Kansas City Fed President Says Rates Should Lean Against Demand Growth

Federal Reserve Bank of Kansas City President Jeff Schmid said officials need to keep pressing against inflation, which has remained stubbornly high.

“With inflation still too high, monetary policy should lean against demand growth to allow the space for supply to grow and relieve price pressures in the economy,” Schmid said Monday in remarks prepared for an event in Kansas City. He reiterated that rates are only “slightly restrictive,” which he said is appropriate.