Banking executive Jeffrey Schmid named president of Kansas City Federal Reserve Bank

abcnews.go.com:

Jeffrey Schmid, a former banking executive, has been appointed the next president of the Federal Reserve Bank of Kansas City, beginning Aug. 21

WASHINGTON — Jeffrey Schmid, a former banking executive, has been appointed the next president of the Federal Reserve Bank of Kansas City, beginning Aug. 21.

As president of one of the 12 regional Fed banks, Schmid will participate in the eight meetings the Fed holds each year to determine the path of short-term interest rates. Schmid is joining at a fraught time, as Fed officials are considering whether to lift their key interest rate for a 12th time in the past year and a half at their next meeting in September.

Another increase would be intended to combat inflation, which has fallen sharply from last summer's four-decade high. Too many rate hikes by the Fed could push the economy into recession.

Schmid will replace Esther George, who retired in January as required by mandatory retirement rules. While he will participate in meetings, Schmid won't have a vote on interest rate decisions until 2025, because the regional Fed presidents vote on a rotating basis, usually once every three years.

George was generally a hawkish president, meaning she typically favored higher interest rates to keep inflation under control. “Dovish” Fed officials, by contrast, usually support lower rates to bolster growth and hiring. Historically, the president of the Kansas City Fed has tended toward hawkish views.

Fed policymakers have signaled they may support one more increase in the central bank's key rate, which is currently at about 5.4%, its highest level in 22 years. Most economists expect the Fed will forego another increase as inflation falls, but some think it could happen at the Fed's