The minutes of the Federal Reserve's July meeting mentioned AI and focused on its impact on inflation and financial stability

The minutes of the Federal Reserve's July meeting showed that decision-makers mentioned AI 18 times in 15 paragraphs discussing the economic outlook. Officials warned that AI infrastructure investment would drive up aggregate demand and increase inflationary pressures, while also concerned that AI capital expenditures would rely on non bank and regional bank financing, and that a reversal in AI asset pricing would impact financial institutions. The meeting minutes pointed out that there is uncertainty about the impact of AI on the job market, and the construction of data centers has exacerbated some job shortages. Officials have doubts about the timeline for AI to improve productivity.