Fed policymakers split evenly over whether rates should rise
Policymakers judged that upside risks to price stability remained elevated even as risks to US employment eased, according to Reuters, and several said price pressures had broadened across goods and services.
Some officials expected inflation to recede as energy costs and tariff effects fade, the minutes showed, a view complicated on Wednesday when Trump signalled that a preliminary truce with Iran could collapse, the New York Times reported, reviving the prospect of another energy shock.
A newer worry surfaced too.
“Many participants noted that ongoing strong demand for AI infrastructure would likely sustain upward pressure on prices for technology products and electricity,” the minutes said, as reported by AP, which pointed to US data centres’ heavy power needs and Apple’s recent move to raise laptop and iPad prices on costlier memory chips.
Warsh, by contrast, has argued artificial intelligence will prove disinflationary as it lifts productivity, according to CNBC.
