
AI and Inflation: Fed Worries About Skyrocketing Demand
Artificial intelligence isn't just about algorithms and chips anymore. It's now a direct concern for the Federal Reserve regarding US inflation.
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Saturday, August 1, 2026
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Artificial intelligence isn't just about algorithms and chips anymore. It's now a direct concern for the Federal Reserve regarding US inflation.

Amazon just decided to borrow a whopping $25 billion. This massive move has already sent shivers down the spine of US Treasury bonds, which are struggling with rising oil prices.

Betting on interest rates is a high-wire act. JPMorgan suggests the Fed might hold steady in July, disappointing those hoping for more hikes.
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AI isn't just making chips expensive. The IMF's chief economist says artificial intelligence is actually making people richer and more willing to splurge, which fuels inflation through a completely different path than we thought.

While everyone's cheering on AI's superpowers, there's a much less glamorous party happening inside chip factories: hardware prices are going haywire, and that bill is landing squarely on the price tag of your phones, computers, and cars. The frenzied buildout of data centers to train AI models is hoovering up memory like a black hole, with RAM prices jumping 200% — and guess who's footing the bill? Spoiler: it's you.