Fed Vice Chair Schmeltzer: Inflation Remains Top Risk Amid Economic Resilience

According to remarks delivered on Thursday at the Kansas City Federal Reserve banking conference, Federal Reserve Vice Chair Beth Schmeltzer said inflation remains the primary risk facing the U.S. economy, though it has declined significantly from its peak. Speaking in her regional address, Schmeltzer noted: “Persistent inflation is the most pressing risk currently facing our economy. While inflation has come down notably from its peak, in my conversations with business leaders in the Tenth District, it is clear that inflation remains too high.” Schmeltzer added that despite multiple challenges, “the U.S. economy continues to demonstrate remarkable resilience.” She pointed to geopolitical uncertainties and elevated oil prices as headwinds that could dampen household consumption and increase business costs, though the overall economic fundamentals remain solid. Labor markets are holding stable across the region.