AI is fully permeating Fed rate decisions, with AI mentioned 18 times in 15 economic discussions.

BlockBeats News, August 21st. The Federal Reserve recently released the minutes of its July meeting, revealing that in the 15 paragraphs discussing the economic situation and outlook, AI was mentioned 18 times. Officials at the meeting warned that large-scale AI infrastructure investment could potentially boost aggregate demand, exerting broader pressure on overall inflation. At the same time, the impact of AI on the job market still carries significant uncertainty.

Some officials believe that AI-related price pressures are currently concentrated only on chips, software, and some consumer electronics, but other officials pointed out that the expanding scale of AI investment may already be or is about to have an impact on overall prices. Additionally, Federal Reserve officials expressed concern that the increasing AI capital expenditure is becoming more reliant on non-bank investors and regional banks for debt financing. In the event of a sharp reversal in AI asset pricing, this reliance could lead to significant repricing of stocks, impacting financial institutions and consumer spending.

The minutes also noted that the current impact of AI on the job market may be limited. While data center construction has created jobs in some areas, it has also exacerbated shortages in trades such as electricians, plumbers, and construction workers. Some officials further cautioned that the promised productivity gains from AI may face significant uncertainty in terms of realization and timing.