No room to be complacent on inflation
Inflation is hot, demand is outpacing supply
No mention of Iran conflict in prepared remarks
I hear optimism from contacts about the year ahead; I share it
Growth trajectory remains strong, helped by fiscal policy
Labor market is in balance
Services inflation strong and faster than consistent with return to 2% inflation
Open to possibility that AI could drive non-inflationary growth, but not there yet
Policy Stance: Hawkish
These remarks are decidedly hawkish. By characterizing inflation as "hot" and noting that demand continues to outpace supply, the tone suggests that the Fed is not yet ready to declare victory. The specific focus on services inflation running faster than the $2\%$ target, combined with the "not there yet" stance on AI-driven productivity gains, signals a preference for maintaining a restrictive policy stance for longer.
Role and Voting History
Jeffrey Schmid is the Presidentof the Federal Reserve Bank of Kansas City.
2025 Voting Status: Schmid was a voting member of the FOMC in 2025.
October 2025 Dissent: During the October 2025 meeting, Schmid was one of two members to dissent against the committee's decision to lower interest rates by 25 basis points. He stated he preferred to keep rates unchanged at that time.
2026 Rotation: As of the start of 2026, Schmid has rotated out of his voting position on the FOMC.
Current Participation: While he attended the January 28, 2026 meeting, he did not have a vote on the unanimous decision to leave rates steady.
