AI infrastructure spending blunts high rates, complicating Fed inflation fight

NYT · 2 days ago
  • Rising borrowing costs are squeezing households and businesses, yet AI infrastructure investment demand remains undeterred.
  • The resilience of AI capex is contributing to inflation, creating a policy problem for the Fed as it tries to slow demand with high rates.

Quotes

“Rising borrowing costs are taking a toll on households and businesses. But they are doing little to dampen enthusiasm for investments in A.I. infrastructure, which are contributing to inflation.”— The New York Times

Sources