Kansas City Fed President Jeff Schmid isn’t mincing words. Speaking at the Future of Banking Conference on May 14, he labeled inflation the “most pressing risk to the economy,” a phrase that should get the attention of anyone with a portfolio, a mortgage, or a grocery bill.

Inflation has remained above the Fed’s 2% target for more than four years now. Recent figures hover around 3%.

Schmid has been gathering intelligence from business leaders across the Tenth Federal Reserve District, which covers Colorado, Kansas, Nebraska, Oklahoma, Wyoming, and parts of Missouri and New Mexico. Those conversations have painted a consistent picture: prices are still sticky, and businesses aren’t expecting relief anytime soon.

The Kansas City Fed president pointed to demand-driven growth that continues to outpace improvements on the supply side. Schmid has also consistently warned against treating inflation shocks as transitory. Rising energy prices, he has noted, add another layer of complexity to the inflation picture.

At the October 2025 FOMC meeting, he dissented against a 25-basis-point rate cut, arguing that the Fed should maintain its existing target range instead. His reasoning was grounded in what he sees as a balanced labor market and continued economic strength.

Schmid took office as Kansas City Fed president on August 21, 2023, arriving into a policy environment already defined by the most aggressive rate-hiking cycle in decades.

For crypto markets, Schmid’s remarks included no direct references to digital assets. The traditional financial establishment, at least as represented by this particular Fed official, remains squarely focused on conventional economic indicators: inflation, employment, GDP growth, and energy costs.