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THE FED JUST OFFICIALLY BLAMED AI FOR RISING INFLATION.
In the June 16-17 FOMC minutes, the Fed's staff directly cited AI-related price pressures as a driver of core goods inflation, alongside tariffs.
Here's what the minutes say:
1. Core goods price inflation has risen, with staff attributing it to "tariffs and AI-related price pressures" directly
2. The Fed sees no rate changes through early 2027, with one cut only in Q2 2027
3. Market pricing already implies one rate hike by mid-2027
4. Some members believe AI will eventually reduce inflation through productivity gains, but explicitly warned "this effect would likely take time to materialize"
The contradiction is now official.
The same AI boom driving semiconductor stocks up 220% this year is also pushing up chip prices, memory prices, electricity prices, and data center construction costs.
Those cost increases are flowing directly into the inflation data the Fed is watching.
AI is contributing to inflation right now. The productivity payoff that might reduce inflation is years away.
6:00 PM – Netanyahu: "We will strike Iran's nuclear sites tonight. No one can stop us." 🇮🇱
7:05 PM – Pezeshkian: "Our missiles are already ready. Just press the button and see what happens to Tel Aviv." 🇮🇷 The Middle East is in a very precarious situation right now. This is sheer madness.
7:00 AM → U.S. MORTGAGE DATA 9:00 AM → USED CAR PRICES 10:30 AM → EIA OIL INVENTORIES 1:00 PM → 10-YEAR NOTE AUCTION 2:00 PM → FOMC MINUTES 3:00 PM → CONSUMER CREDIT Bearish Schedule For Today. NewYork Session.