Federal Reserve: AI-Related Investment Driving Strong Growth, Iran War Uncertainty Remains Key Risk

BlockBeats News, July 10th, the Federal Reserve's semi-annual report shows that the overall U.S. economic activity remained robustly expanding in 2026, mainly driven by high-tech investment and government spending. Factory output saw strong growth due to AI-related data center investment, with production capacity continuing to increase.

However, the housing market has stagnated, and external economic growth has been weak due to the Middle East conflict and tariff drag. The labor market remains generally stable, with both wages and productivity rising, but a slowdown in immigration has led to a decrease in labor supply, leaving small businesses and households facing tight credit conditions.

Inflation remains high and continued to rise further in the spring, with asset prices above historical norms. The overall financial system is stable, with banks holding sufficient reserves. While there is some redemption pressure in the private lending market, it continues to operate normally. Long-term inflation expectations are largely anchored around the 2% target, but the uncertainty brought by the Iran war remains a major risk.