Jeffrey Schmid to step up as KC Fed president Aug. 21

The Kansas City Fed announces the appointment of Jeffrey R. Schmid as its next president and CEO as of August 21. Schmid takes over from Esther George who retired in January and will fill the remainder of the term ending February 28, 2026. He will be eligible for another 5-year term after that.

The announcement is the end of a long search that was hampered by the new and more restrictive ethics rules for Fed officials that followed questions about financial activities on the part of some Fed bank presidents. The Kansas City search was particularly focused on having a community banker as its next president.

The Kansas City Fed announcement said, “Schmid has more than 40 years of banking and regulatory experience, including positions at the Federal Deposit Insurance Corp. (FDIC) and in leading the establishment of Mutual of Omaha Bank, where he served as chairman and CEO. He is a native of Nebraska.”

Schmid’s impact on the outlook for monetary policy may be limited initially. The Kansas City presidency does not return to FOMC voting status until the first meeting in 2025. Schmid will be an FOMC participant, but not an FOMC voter until then.

Later in August, St. Louis Fed president James Bullard – the most senior of the District Bank presidents – is stepping down after over 15 years in office. His successor has not been named. Also on the near horizon for retirement at the end of the current term for District Bank presidents are Cleveland’s Loretta Mester and Philadelphia’s Patrick Harker

While there may be some turnover in the top ranks of the District Banks, there is a strong tendency for a bank to bring in a new president who fits the traditional culture in terms of its outlook on monetary policy.