- Fed officials cited "surging AI-related investments" as a factor in inflation pressures at their September meeting, per minutes released Wednesday.
- Officials are increasingly pointing to the artificial intelligence buildout, rather than tariffs, to explain why goods prices keep rising — the tariff effect is described as waning.
- The read-through is a persistent goods-inflation impulse tied to data center construction and AI capital spending, which keeps pressure on the rate path.
Quotes
“surging AI-related investments”
“Federal Reserve officials are increasingly pointing to the artificial intelligence buildout, rather than tariffs, to explain why the prices of goods keep rising, according to minutes of their September meeting released Wednesday.”