Kansas City Fed President: Inflation Remains 'Most Pressing Risk'

Kansas City Federal Reserve President Jeff Schmid is warning that inflation remains the 'most pressing risk to the economy.' In remarks at the Future of Banking Conference on May 14, Schmid stated inflation has stayed above the Fed's 2% target for more than four years, with recent figures hovering around 3%.

Schmid, who gathers intelligence from business leaders across the Tenth District, says prices remain sticky and businesses do not expect near-term relief. He pointed to demand-side growth outpacing supply-side improvements, and warned against treating inflation shocks as temporary.

At the October 2025 FOMC meeting, Schmid dissented against a 25-basis-point rate cut, arguing the labor market is balanced and the economy remains strong. He took office on August 21, 2023.

Schmid did not reference digital assets, remaining focused on conventional indicators: inflation, employment, GDP growth, and energy costs.