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Fed's Schmid says need to weigh how to make monetary policy more restrictive?

BY Reuters | ECONOMIC | 07:11 AM EDT

May 29 (Reuters) - Federal Reserve Bank of Kansas City President Jeffrey Schmid said the current arc of inflationary pressures means that the central bank may need to weigh tightening the overall stance of monetary policy.

"We're not very restrictive at this stage and I think there's some dialog that, that we need to start considering what tools we have to really make it a little bit more restrictive," depending on how the oil shock plays out in an environment of already high inflation, Schmid said at an event held in Iceland. (Reporting by Michael S. Derby; Editing by Hugh Lawson)

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Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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