Kansas City Fed names former bank executive Jeffrey Schmid as new president

Aug. 2 (UPI) -- The Federal Reserve Bank of Kansas City, one of twelve Federal Reserve Banks to set monetary policy, has a new president and chief executive officer following a lengthy nationwide search.

Former bank executive Jeffrey Schmid will take over the bank's leadership after Esther George, who led the bank for 12 years, retired earlier this year, Kansas City Fed announced Wednesday.

"Our Board of Directors announced today that Jeffrey R. Schmid has been appointed as president and CEO of the Kansas City Fed beginning Aug. 21, 2023," the bank wrote in a post on X, the social-media platform formerly known as Twitter.

"I am honored to be selected to serve the Tenth District in this role and for the opportunity to lead the Kansas City Fed's talented workforce as it carries out its important public mission," Schmid said in a statement.

"It is a privilege to represent this region and to be able to build upon the long tradition of service that the Bank is well known for."

Schmid, who will officially start his new role on Aug. 21, will serve out the remainder of George's five-year term through February 2026.

Schmid has more than 40 years experience as a regulator and banker, and is the current president of Southwestern Graduate School of Banking at Southern Methodist University in Dallas. He started his career in Kansas City as a Federal Deposit Insurance Corporation bank examiner, before serving as chief executive officer at Mutual of Omaha Bank.

"Jeff's perspective as a native Nebraskan, his broad experience in banking, and his deep roots in our region will be an incredible asset to the Federal Reserve, both as a leader of the organization and in his role as a monetary policymaker," María Griego-Raby, a Kansas City board member who led the search committee, said in a statement.

The Kansas City Fed serves seven states in the Tenth District, including Colorado, Kansas, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.

Schmid's appointment comes as the Federal Reserve has raised interest rates 11 times in an effort to curb 40-year high inflation.

While Schmid will not become a voting member of the Federal Open Market Committee -- which sets interest rate policy -- until 2025, he will participate in meetings starting in September.

Three days after he begins his new role, Schmid and the Kansas City Federal Reserve will host an annual gathering of central bankers from Aug. 24-26 in Jackson Hole, Wyo. The retreat, which often determines policy strategy, will feature a keynote address from the Fed chair.