Fed's Schmid: Powell is a 'patriot' who wants to do the right thing for nation

Fed's Schmid: Powell is a 'patriot' who wants to do the right thing for nation

Fed’s Schmid: Powell is a ‘Patriot’ Who Prioritizes Economic Stability Over Political Pressure

Kansas City Fed President Jeff Schmid has consistently defended Federal Reserve Chair Jerome Powell, emphasizing his commitment to central bank independence and economic stewardship amid political challenges. Schmid’s remarks follow a period of heightened scrutiny, including a threatened indictment of Powell by the Trump administration, which Schmid characterized as an attempt to influence monetary policy. “I believe in my DNA that an independent central bank is very important to the nature of managing this amazing economy,” Schmid stated, underscoring his support for Powell’s principled stance according to Schmid.

Powell’s resolve has been tested by external pressures and complex economic dynamics. In August 2025, Powell outlined the Fed’s evolving policy framework, noting that inflation remains above the 2% target while the labor market operates near maximum employment despite structural challenges like immigration policy shifts and global trade changes as detailed in his speech. Schmid recently echoed these concerns, dissenting from the October 2025 rate cut decision. He argued that reducing interest rates risked undermining inflation control, stating, “Inflation remains too high and is spreading across categories,” and warning that rate cuts might erode confidence in the Fed’s 2% inflation objective according to Schmid’s analysis.

Schmid’s dissent aligns with broader FOMC divisions. While Powell and others prioritized supporting a slowing labor market, Schmid and colleagues like Dallas Fed’s Lorie Logan and Cleveland Fed’s Beth Hammack advocated for maintaining restrictive policy to address persistent inflation as reported. Powell, however, emphasized data-dependent decision-making, cautioning that further rate cuts were not “a foregone conclusion” according to Powell’s remarks.

Despite disagreements on tactics, Schmid’s public endorsements highlight his trust in Powell’s integrity. “Powell wants to do the right thing for the nation,” Schmid implied, reflecting confidence in his leader’s ability to balance dual mandates of price stability and employment while resisting external interference as Schmid stated. As the Fed navigates a fragile economic landscape, Schmid’s support for Powell’s independence underscores the central bank’s commitment to depoliticized policymaking.

(https://longbridge.com/en/news/272740586): Kansas City Fed President Jeff Schmid on central bank independence.
(https://www.federalreserve.gov/newsevents/speech/powell20250822a.htm): Powell’s August 2025 speech on monetary policy and economic conditions.
(https://www.scotsmanguide.com/news/feds-schmid-explains-october-rate-cut-dissent/): Schmid’s October 2025 dissent and FOMC policy debate.