Kansas City Fed President Jeff Schmid warns inflation remains too high, signaling potential rate hikes despite mortgage costs rising to 6.69%.
Federal Reserve Bank of Kansas City President Jeff Schmid indicated monetary policy may not be restrictive enough to curb inflation, which he called “too high.” Schmid’s remarks follow a rise in the average 30-year fixed mortgage rate to 6.69%, its highest since July 2025, according to Freddie Mac data.
At the Fed’s latest meeting, the benchmark rate was held at 3.5% to 3.75%, though three officials voted for an increase. Schmid did not specify the timing or magnitude of potential hikes but emphasized the need for tighter policy to reach the Fed’s 2% inflation target.
A $400,000 mortgage at 6.69% now costs $2,578 monthly, up $185 from February’s 5.98% rate, adding over $2,200 annually before additional fees.