---A non-voting Fed official argued the central bank needs to tighten further, casting doubt on whether recent inflation relief will last. Schmid is the fifth Fed regional president to say he would like to raise rates since last week's 'on hold' meeting. Schmid argued that current Fed policy is not restrictive given recent data, and that bringing inflation back to target will therefore require tighter policy. Schmid also said he views the personal consumption expenditures price index as the best gauge of inflation, and reiterated that underlying inflation levels remain too high relative to the Fed's target. Notably, Schmid pointed to artificial intelligence-related investment as an additional factor pushing up inflation, one that he said the Fed should not overlook.