AI boom drives up inflation: Why is it difficult for the Fed to raise rates with precision?

date
20/10/2026
Zhitong Finance APP has learned that the Federal Reserve is increasingly recognizing that the artificial intelligence (AI) boom is fueling inflation. This presents Fed officials with a dilemma: to suppress the price pressures amplified by the AI industrycomposed of well-known companies such as Amazon, Apple, and Anthropicthey may have to cool other sectors of the economy. Yet these giants are relatively less affected by interest rate hikes.