Jeffrey Schmid, President of the Federal Reserve (Fed) Bank of Kansas City, said that Continued inflation is the most pressing risk to the economy. Adding that The US economy is less vulnerable to global oil disruptions than in the past, but high oil prices drain household spending power and raise business costs in prepared remarks to a banking industry conference hosted by the Kansas City Fed on Thursday.

Key Quotes:

Continued inflation is the most pressing risk to the economy, clear that it is still too high.

The US economy has shown remarkable resilience and economic fundamentals remain sound.

The US economy is less vulnerable to global oil disruptions than in the past, but high oil prices drain household spending power and raise business costs.

The job market is functioning effectively.

Consumer spending remains the biggest driver of activity, wealth gains are leading many households to increase spending.

Business investment remains strong, especially in tech and AI buildout.

Conditions are fundamentally sound in the banking sector.”