Kansas City Fed President Jeff Schmid reaffirmed his commitment to combating inflation, emphasizing the need for restrictive monetary policy. Speaking at a banking conference on May 14, Schmid identified persistent inflation, currently around 3%, as the primary risk to the US economy, advocating against premature rate cuts. Schmid's stance, marked by his dissent against recent rate cuts, highlights his concern that easing too soon could entrench inflation. He argues that the economy's momentum and balanced labor market justify maintaining tight conditions. This approach contrasts with market expectations for rate cuts in 2026, posing challenges for crypto markets as higher borrowing costs could deter speculative investments.