Federal Reserve's Schmid: Inflation remains the biggest risk, but the US economy shows resilience. On May 14th, the Federal Reserve's Schmid said on Thursday that inflation remains the biggest risk facing the US economy, but the US economy still shows "amazing resilience" in the face of numerous challenges, while the overall labor market remains stable. In a speech at a banking conference held by the Kansas City Fed, Schmid said, "I believe that sustained inflation is the most pressing risk facing the economy today. Although inflation has clearly fallen from its peak, it is evident in my conversations with business leaders in the tenth largest jurisdiction that inflation levels are still too high." Schmid said, "Despite the many challenges facing the US economy, it has shown astonishing resilience. The geopolitical situation continues to bring uncertainty. Although the US is less vulnerable to global energy disruptions than in the past, higher oil prices will still weaken household consumption capacity and push up business costs. However, even in the face of these headwinds, the economic fundamentals of the US and the tenth largest jurisdiction remain robust. ''