Schmid Eyes Rate Hike as Fed Tackles Inflation at Jackson Hole Symposium

Kansas City Fed President Jeff Schmid is gearing up for the bank's annual policy symposium in Jackson Hole, where new Federal Reserve Chair Kevin Warsh will deliver a highly anticipated speech.

As president of the K.C. Fed, Schmid has been vocal about his desire to tackle inflation, which he views as an 'economic thief' that must be brought down to 2%. He dissented at policy meetings twice in 2025, opposing rate cuts and earning a reputation as a 'Fed hawk.'

In our conversation with him, Schmid outlined the factors he sees as crucial in determining whether he votes for a rate hike in the final months of 2026. One key indicator is the show of hands from community and business leaders in his district, who overwhelmingly believe policy rates are still accommodative rather than restrictive.

Schmid emphasized that if policy rates are not restrictive, it may be necessary to take action to firm up the lower end of the yield curve. He highlighted the importance of considering various factors, including energy prices, commodity prices, and the impact of technological advancements on demand.