Federal Reserve's Schmid: Investments in the field of artificial intelligence are also driving up inflation, which is something the Federal Reserve cannot ignore.

Federal Reserve Bank of Kansas City President Esther George warned against complacency regarding inflation driven by supply shocks, noting that the recent rise in energy prices is merely a fleeting relief in the context of the constantly changing situation surrounding President Donald Trump's Middle East conflicts. While the latest inflation data for June shows an encouraging slowdown, it is still too early to place too much emphasis on a single data point relative to recent trends, the official stated, adding, With oil prices on the rise again, it remains uncertain how long the relief from energy prices will last. George also pointed out that, relative to the Fed's 2% target, the core level of inflation remains too high, and added that investments in the field of artificial intelligence are also contributing to rising inflation, which the Fed cannot overlook.