Fed's Schmid calls for tighter monetary policy to tamp down on 'too high' inflation

Aug 4 (Reuters) - Federal Reserve Bank of Kansas City President Jeff Schmid said on Tuesday that some sort of monetary policy tightening is needed to ‌get "too high" inflation back to the 2% target.

"The economy appears to be performing well with ‌the notable exception of inflation," Schmid said in the text of a speech to be delivered before an event held ​by his bank on farming issues.

"My primary concern is inflation" and given recent data it does not look like monetary policy is restrictive and leaning against those price pressures, Schmid said. "As such, I believe that bringing inflation down to the Fed's 2 percent objective will require tighter policy."

The official, who does not ‌currently have a vote on the ⁠interest-rate-setting Federal Open Market Committee, did not say when or by how much he'd like the Fed to raise rates.

Schmid's remarks were his first since last ⁠week's FOMC meeting. Then, officials voted in favor of keeping the federal funds target rate range steady at between 3.5% and 3.75% amid long-running worries that inflation is too high.

Three Fed officials voted in favor of ​a ​hike, to quell price pressures, and other officials who've ​spoken over recent days have signaled an ‌openness to raising rates depending on what happens with the economy.

Markets are expecting tighter monetary policy. But the challenge for investors and traders is that new Fed Chairman Kevin Warsh is declining to provide any guidance about what he thinks should happen with interest rate policy, and has been very light on the details of how he thinks about setting rate policy.

In his remarks, Schmid cautioned against ‌shrugging off inflation that results from supply shocks and ​noted that recent relief from higher energy prices has proved ​short-lived, amid the ever-shifting currents of President ​Donald Trump's Middle East war.