Jay Powell Strikes a Hawkish Tone as Fed Defies Calls for Rate Cut

The **US Federal Reserve**, commonly known as the Fed, is the central banking system of the United States, created by the Federal Reserve Act on December 23, 1913, in response to frequent financial panics like the panic of 1907[2][4]. Its foundational purpose was to enhance the stability of the American banking system by providing an elastic currency and acting as a lender of last resort to banks facing liquidity shortages[1][4]. Structurally, the Fed consists of a Board of Governors in Washington, D.C., and 12 regional Federal Reserve Banks spread across the country, combining central oversight with regional independence to reflect the diverse economic activity in different areas[5][10]. This hybrid structure allows the Fed to supervise and regulate banks, maintain financial system stability, and provide financial services, including the issuance of Federal Reserve notes (the main form of US paper currency)[1][5][8]. The Fed’s **dual mandate**, established by Congress, directs it to maximize employment and stabilize prices, while also moderating long-term interest rates. Over time, its responsibilities have expanded to include supervising and regulating banks, ensuring financial stability, and facilitating the nation’s payment systems through innovations such as electronic payment services and the Automated Clearing House (ACH) system initiated in the 1970s[2][7][5]. Historically, the Fed has played critical roles during major economic events, including financing World War I efforts, managing monetary policy during the Great Depression, and responding to the 2008 Great Recession[3][2]. Its independence from direct political control—evidenced by its funding mechanism and staggered board terms—allows it to make policy decisions based on economic conditions rather than political pressure[2]. Currently, the Federal Reserve remains a pivotal institution balancing economic growth, inflation control, and financial system stability, while embracing technological advancements in payments and economic research to adapt to the evolving financial landscape[2][5]. This makes the Fed

The **Federal Reserve Bank of Kansas City** is one of the 12 regional Reserve Banks forming the U.S. central banking system, the Federal Reserve. It serves the Tenth Federal Reserve District, which includes Colorado, Kansas, Nebraska, Oklahoma, Wyoming, western Missouri, and northern New Mexico, covering a vast geographic area second only to the San Francisco Fed[3][5]. Its mission is to promote economic and financial stability in the public interest through bank supervision, economic research, and monetary policy implementation[1][6]. Established in 1914 following the Federal Reserve Act of 1913, the Kansas City Fed was created to provide a more equitable distribution of credit, especially to agricultural and industrial sectors in the West and Great Plains, historically underserved by eastern financial centers[2]. Kansas City's selection as a Reserve Bank site underscored its role as a western "gateway city," pivotal for balancing economic power between the nation's interior and the eastern seaboard[2]. The bank's presence has contributed significantly to regional economic development by supporting credit access and financial infrastructure. The bank's headquarters is located at 1 Memorial Drive in Kansas City, Missouri, near iconic landmarks such as the National World War I Museum and Union Station[1][3]. Its current building, opened in 2008, replaced the historic 925 Grand building, once the oldest operating Federal Reserve building[3]. Branch offices are located in Denver, Colorado; Oklahoma City, Oklahoma; and Omaha, Nebraska, facilitating regional outreach and services[1][4]. Jeffrey R. Schmid became the Bank’s 10th president and CEO in August 2023. He brings extensive banking leadership experience, including prior roles at the Southwestern Graduate School of Banking Foundation and Mutual of Omaha Bank[4]. Under his leadership, the Kansas City Fed continues to focus on advancing economic research, monetary policy, and community development. Notably, the bank issues Federal Reserve Notes identified by the letter "J," reflecting it

## Overview The Federal Reserve Bank of Boston, often called the “Boston Fed,” is one of 12 regional Reserve Banks that, together with the Board of Governors in Washington, D.C., form the central banking system of the United States[3]. Headquartered at 600 Atlantic Avenue in Boston, Massachusetts, it serves the First Federal Reserve District, which encompasses the New England states of Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont, as well as most of Connecticut (excluding Fairfield County)[4][5]. The current president and CEO is Susan M. Collins, who assumed office in July 2022[1][5]. ## Role and Functions The Boston Fed’s mission is to promote stable prices, maximum employment, and a resilient, inclusive economy for New England and the nation[3]. Its activities include conducting rigorous economic research, supervising financial institutions, and ensuring the safety and soundness of the U.S. financial system. The Bank also plays a vital role in the nation’s payments infrastructure—distributing currency, processing electronic payments, and developing new technologies to modernize payment systems[1][3]. ## Innovations and Key Achievements The Boston Fed has a long history of innovation, particularly in payments technology. As early as 1942, it began using IBM machines to process checks more efficiently. In the 1980s, it pioneered the use of image technology to accelerate check processing between banks, a precursor to today’s mobile deposit systems[1]. The Bank was selected by the U.S. Treasury in 2004 to build and maintain the systems for the government’s Internet payments platform, which agencies use to procure and pay for goods and services[1]. More recently, the Boston Fed has been at the forefront of developing FedNow, a real-time payments service aimed at modernizing the U.S. payments infrastructure[1]. The Boston Fed is also recognized for its leadership in reducing fraud risk and advancing the security of the