Fed's Schmid: Supported rate hike, inflation not just driven by energy

Kansas City Federal Reserve President Jeff Schmid said on Friday he supported the central bank's decision this week to raise interest rates as a step towards lowering inflation that is trending above the Fed's 2% target and is not just driven by high energy costs.

"Our inflation problem is not just about energy," Schmid said in remarks prepared for delivery to a Colorado banking group. "Inflation excluding energy has also been running hot and a broad range of goods and services are showing price growth inconsistent with our price stability target."

Schmid said inflation appears to be trending above 3%.

Schmid, who is not a voter on interest rates this year, did not indicate if he felt further hikes will be needed to return inflation to the Fed's target.