Kansas City Federal Reserve president Jeff Schmid said Tuesday night that inflation is too high and bringing it down will require higher interest rates. The Personal Consumption Expenditures index clocked in at 3.3% in June on a "core" basis, which excludes volatile food and energy prices. He noted that volatile oil prices both pushed inflation up in prior months and contributed to the June decline. He also cautioned against chalking up high inflation to supply shocks alone. "A supply shock has a far different effect on inflation when demand is strong than when demand is weak," he said.