Federal Reserve Bank of Kansas City

The Federal Reserve Bank of Kansas City is one of the 12 regional Reserve Banks that, together with the Board of Governors in Washington, D.C., make up the Federal Reserve System. It serves the Tenth Federal Reserve District from its headquarters in Kansas City, Missouri, and through branches in Denver, Oklahoma City and Omaha. Its work includes supporting national monetary policy, supervising financial institutions, providing payment services, and researching economic conditions in its region. ^[1][2]

Role in the Federal Reserve System

The Kansas City Fed is a regional component of the United States central bank, rather than a separate national policymaker. The Federal Reserve System’s major components—the Reserve Banks, the Board of Governors and the Federal Open Market Committee—have distinct but connected responsibilities. The Kansas City Fed contributes regional information, operational capacity and institutional expertise to the wider system. ^[3]

The Bank’s responsibilities form part of the Federal Reserve’s broader public mission. These functions include conducting monetary policy to support maximum employment and stable prices, maintaining financial stability, promoting the safety and soundness of financial institutions, facilitating payments, and supporting consumer protection and community development. The Kansas City Reserve Bank carries out relevant work locally and participates in System-wide activities. ^[4]

The Bank’s president also has a role in national monetary-policy deliberations. The president of the Kansas City Fed is a member of the FOMC. Like other Reserve Bank presidents, the Kansas City Fed president participates in FOMC meetings and contributes information about economic and financial conditions. Voting rights rotate among Reserve Bank presidents, with the New York Fed president holding a permanent vote; the president of the Kansas City Fed votes according to the established rotation. ^[3]

District and branches

The Tenth District covers Colorado, Kansas, Nebraska, Oklahoma and Wyoming, as well as 43 counties in western Missouri and 14 counties in northern New Mexico. The main office is in Kansas City, Missouri. The Bank’s three branches are located in Denver, Oklahoma City and Omaha. ^[1]

The branches provide regional connections to the central bank and support the Bank’s work across a geographically diverse district. Their activities include research and public outreach, bank examination and supervision, community development, and services connected with the Federal Reserve’s broader mission. Branches also help the institution engage with businesses, financial institutions and communities beyond its headquarters city. ^[2][5]

The Bank gathers information on economic activity from sources across its district. This regional perspective is relevant to a Federal Reserve System designed to draw on economic conditions in different parts of the country. The Kansas City Fed’s published work includes regional and national economic research, banking analysis, agricultural research, community-development information and recurring surveys. Its regional work can cover conditions in industries and communities whose circumstances may not be captured by national measures alone. ^[2][6]

History

The Federal Reserve System was created by Congress in 1913, and the Federal Reserve Bank of Kansas City was incorporated the following year. After the Federal Reserve Act was signed on December 23, 1913, cities across the country competed to be selected as Reserve Bank locations. The organizing process considered factors including regional banking support, commercial and financial connections, transportation and communications, population, and the ability of a district to meet its banking needs. ^[7]

Kansas City received strong backing from banks in the surrounding region during the selection process. The Reserve Bank Organizing Committee incorporated the institution on May 18, 1914. Its establishment reflected a regional effort to secure a Reserve Bank serving the central plains and mountain west, and the later branches extended that regional presence. ^[7][8]

The Bank’s locations and organization have developed over time, but its role remains part of a decentralized central-bank structure. The central-bank system combines national responsibilities with regional institutions that maintain connections to local economies and financial systems. The Kansas City Fed’s historical publications describe both its founding and the development of its offices in the district. ^[7][8]

Monetary policy and economic research

The Kansas City Fed supports monetary-policy deliberations by analyzing economic conditions in its district and contributing research and observations to the Federal Reserve System. Regional information is one input into national policy discussions; the Bank does not independently set the federal funds rate. Decisions about the federal funds rate are made by the FOMC, while the Kansas City Fed’s work helps inform understanding of the economy. ^[3][6]

The Bank publishes research and data on the national economy, local economies and particular industries. Its district research includes attention to agriculture, banking, energy and rural economic conditions, among other areas. It also produces recurring surveys across the seven-state region it describes as the Tenth District. These materials offer observations and analysis; they are distinct from official monetary-policy decisions. ^[6]

The Kansas City Fed also monitors banking conditions in its district and publishes analysis of commercial-bank performance. Such reports describe financial measures and trends across district banks, and may compare regional developments with national patterns. Banking analysis is one way the Reserve Bank’s regional knowledge contributes to its responsibilities and to public understanding of the financial system. ^[9]

Banking supervision and financial services

The Kansas City Fed participates in the Federal Reserve’s supervision and regulation of financial institutions. Reserve Banks perform supervisory work under the authority and framework of the Board of Governors. The Federal Reserve identifies the Kansas City Fed among the Reserve Banks responsible for supervising state member banks in their respective districts. ^[10]

Supervision is distinct from monetary-policy decision-making. It involves monitoring institutions within the Federal Reserve’s remit and assessing matters related to their safety and soundness and compliance with applicable requirements. The Kansas City Fed’s banking work also includes resources for financial institutions and community banks, examination-related information, and analysis of banking conditions. The precise responsibilities for a particular institution depend on its charter and the applicable regulatory framework. ^[6][10]

The Bank also supports payment and settlement services provided by the Federal Reserve System. Federal Reserve payment services facilitate transactions and dollar payments for depository institutions and the U.S. government. Currency-related activities are part of the Reserve Banks’ operational role as well. The Kansas City Fed’s public information describes currency processing among the activities visitors can learn about at its Money Museum. ^[4][6]

Governance and leadership

Each Reserve Bank is subject to the supervision of a nine-member board of directors. Under the Federal Reserve Act, directors are divided into three classes: Class A, Class B and Class C. Member banks in the district elect Class A directors to represent member banks and Class B directors to represent the public; the Board of Governors appoints Class C directors to represent the public and designates the Reserve Bank board’s chair and deputy chair from among them. ^[3]

Directors provide a connection between the Reserve Bank and the communities it serves. Their responsibilities include corporate governance and contributing knowledge about district economic conditions. The Kansas City Fed also has boards associated with its branches, providing local input and counsel. ^[3][5]

Jeffrey R. Schmid became president and chief executive officer of the Kansas City Fed on August 21, 2023. The Federal Reserve Board lists him as the Bank’s president and identifies the Bank’s headquarters and branches. ^[1]

Jackson Hole Economic Policy Symposium

The Kansas City Fed organizes the annual Jackson Hole Economic Policy Symposium in Wyoming. The event brings together economists, central bankers, financial-market participants, academics, government representatives and journalists to discuss long-term policy and economic issues. It is a forum for presentations and discussion, not a decision-making meeting of the FOMC. ^[11]

The Bank held its first economic policy symposium in 1978 in Kansas City, initially with a focus on agricultural issues. After events in other locations, the symposium moved to Jackson Hole in 1982. Its subject matter developed to include monetary policy and broader national and international economic issues, and it became a prominent annual gathering for discussion among policymakers and researchers. ^[11]

Public information and accountability

The Kansas City Fed publishes information about its organization, governance, research and financial statements. Its financial statements are prepared under accounting principles and practices established for Federal Reserve Banks and are accompanied by independent auditors’ reports. These statements provide financial reporting about the institution; they should be understood in the context of the Reserve Banks’ role as components of the Federal Reserve System, rather than as ordinary commercial banks. ^[4]

The Bank also provides educational resources, public outreach and access to its Money Museum at its Kansas City headquarters. These activities explain aspects of currency, central banking and the economy to visitors and regional audiences. Together with its research publications, branch offices and public-facing materials, these programs are part of the institution’s engagement with the district it serves. ^[2][6]