Kansas City Fed Pres. Jeffrey Schmid is speaking and says:

• Businesses are pausing on hiring.
• Labor market is under a structural not cyclical strain

Jeffrey Schmid leans to the hawkish side on the Federal Reserve. In his most recent public appearance on March 3, 2026, he signaled his continued opposition to further interest-rate cuts, stating that there is “no room to be complacent” as inflation remains “too hot”.

His current policy stance is defined by the following key points:

• Opposition to Rate Cuts: Schmid has consistently voted against recent interest rate reductions, including formal dissents in late 2025 where he preferred to leave the policy rate unchanged while the majority of the committee voted for cuts.

• Persistent Inflation Concerns: He notes that inflation has remained above the Fed’s 2% objective for nearly five years. He recently warned that demand is still outpacing supply, which continues to push up the price of services too quickly.

• Skepticism Toward AI Gains: While some colleagues argue that artificial intelligence is boosting productivity and allowing for lower rates without fueling inflation, Schmid has remained skeptical. He argues there is currently not enough data to support the idea that AI-driven productivity is yet significant enough to justify easing.

• FOMC Role: Although a vocal hawk, Schmid is not a voting member of the Federal Open Market Committee (FOMC) in 2026 due to the Fed’s annual rotation of regional bank presidents.

Jeffrey R. Schmid took office on August 21, 2023, as the 10th president and chief executive officer of the Federal Reserve Bank of Kansas City. A Nebraska native with over 40 years of experience in banking and supervision, he leads a workforce of nearly 2,000 professionals and represents the Tenth Federal Reserve District on the Federal Open Market Committee (FOMC). Before joining the Fed, Schmid served as president and CEO of the Southwestern Graduate School of Banking Foundation at SMU’s Cox School of Business. His extensive private-sector career includes serving as chairman and CEO of Mutual of Omaha Bank from 2007 to 2019 and president of American National Bank from 1989 to 2007. He began his career in 1981 as a field examiner for the FDIC in Kansas City. Schmid holds a BS in business administration from the University of Nebraska-Lincoln and is a graduate of the Southwestern Graduate School of Banking.