St. Louis Fed President: High inflation caused by supply shocks and artificial intelligence
2026-11-06 23:46:47
According to CoinMeta, Alberto Musalem, the president of the Federal Reserve Bank of St. Louis, stated that officials need to be wary of the risk that the construction of artificial intelligence infrastructure will exacerbate inflation in the short term. He pointed out that the current high inflation is influenced by both negative supply shocks related to the Middle East and demand factors associated with the development of artificial intelligence. Musalem is optimistic about artificial intelligence, expecting it to increase productivity, but policymakers cannot wait for these benefits to materialize before taking action. He emphasized that monetary policy should be formulated based on the current economic situation, rather than forecasts for five years from now. He predicts that data center construction will continue to contribute to inflation to some extent over the next 18 months.
Source:CLS
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