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The Federal Reserve's June FOMC minutes explicitly cite AI-related price pressures, alongside tariffs, as one of the factors pushing up core goods inflation.

The Fed also signaled that it expects interest rates to remain elevated, with no cuts projected until Q2 2027.

At the same time, some policymakers noted that AI could eventually reduce inflation through higher productivity, but said those benefits will take time to appear.
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The reason is straightforward. The AI boom is driving demand for chips, memory, electricity, and data center construction, raising costs across the supply chain before any productivity gains have fully materialized.
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AI may lower inflation in the long run. For now, the Fed says it is adding to it.


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