Schmid: Economic Prospects and Central Bank Policy

Welcome and Introduction

I appreciate your presence here today. It is a privilege to visit New Mexico, especially Albuquerque, a major city within the seven-state area that forms the Federal Reserve’s Tenth District.

The Federal Reserve’s Unique Structure

One of the central bank’s most distinctive characteristics is its network of 12 independent district banks, each deeply connected to their local communities across the nation. These regional institutions, such as the Kansas City Federal Reserve, collaborate closely with the Board of Governors in Washington, D.C. Together, they are responsible for shaping monetary policy and guiding interest rates throughout the U.S. economy.