AI is fully penetrating the Federal Reserve's interest rate decisions. 15 economic discussions mention AI 18 times

Comparing news, the minutes of the July meeting recently released by the Federal Reserve show that policymakers mentioned AI 18 times in 15 paragraphs discussing economic conditions and prospects. Officials at the meeting warned that large-scale AI infrastructure investments may put more widespread pressure on overall inflation by boosting aggregate demand, while there is still great uncertainty about the impact of AI on the job market.

Some officials believe that AI-related price pressure is currently only focused on chips, software, and some consumer electronics products, but others point out that the expansion of AI investment may have or will have an impact on overall prices. At the same time, Federal Reserve officials are concerned that AI capital expenditure is increasingly dependent on debt financing provided by non-bank investors and regional banks. Once AI asset pricing is drastically reversed, it may lead to a drastic repricing of stocks and an impact on financial institutions and consumer spending.

The minutes of the conference also pointed out that the impact of AI on the job market may currently be limited. While data center construction is creating jobs in some regions, it is also exacerbating the shortage of jobs such as electricians, plumbers, and construction workers. At the same time, some officials warned that there is still great uncertainty about whether and when the productivity gains promised by AI will be fulfilled.