The Federal Reserve said that artificial intelligence was a contributing factor to inflation in its June meeting minutes and cited “AI-related price pressures” as a driver of core goods inflation.
Fed Points to AI-Related Price Pressures
Minutes from the June FOMC meeting showed that Fed staff attributed higher core goods inflation to “the effects of tariffs and AI-related price pressures,” while also citing higher energy and input costs linked to conflict in the Middle East and stronger demand from the AI buildout.
The Fed added that while AI could eventually boost productivity and help ease inflationary pressures, “this effect would likely take time to materialize.”
“Ongoing strong demand for AI infrastructure would likely sustain upward pressure on prices for technology products and electricity,” the Fed said.
