Kansas City Fed President Jeffrey Schmid said inflation remains above the Federal Reserve's 2% target and that policymakers have not fully solved the problem. According to Sina Finance, Schmid made the remarks on Friday during a discussion in Kansas City, saying inflation has stayed above target for more than five years.

He said policymakers will watch stock valuations and economic performance, but will not look at them too closely. Schmid also said officials need to assess the current state of artificial intelligence and data center construction, and asked whether a "too big to fail" AI ecosystem is forming. He added that some of the data they are trying to monitor is whether any systemic issues exist. Schmid does not have a monetary policy vote this year, but he previously said he supported a Federal Reserve rate hike this month.