Kansas City Federal Reserve President Jeffrey Schmid isn’t sugarcoating it. In a speech delivered on July 16 at an economic forum in Grand Island, Nebraska, Schmid made clear that inflation remains his single biggest concern, calling it “too hot and above target for too long.”
Five years above target and counting
The Fed’s target is 2%. Inflation has now exceeded that benchmark for over five years. Schmid noted that inflation numbers have “probably crept up into the three and a half percent range.” Prices are still climbing nearly twice as fast as the Fed wants them to.
The current federal funds rate sits at 3.50%-3.75%. Schmid has been one of the more vocal hawks on the Federal Open Market Committee. He dissented against a 25 basis point rate cut at the October 2025 FOMC meeting specifically because he believed inflation risks hadn’t been adequately addressed.
Why crypto can’t ignore the Fed
