The Fed is increasingly worried that companies splurging on AI might push prices up first. AI can help businesses improve efficiency and save money in the future, but for now, building data centers means buying chips, memory, and servers, as well as constructing facilities, setting up electricity, and hiring workers. If everyone is buying and building at the same time, and supply can't keep up, these things are likely to get more expensive, potentially driving up costs in other industries too. Building also requires money. Companies issuing large amounts of debt for financing essentially means there are more people in the market looking to borrow. If the number of lenders doesn't increase accordingly, companies might have to pay higher interest rates to borrow money. This could put pressure on financing costs across the market. The latest Fed meeting minutes have already explicitly discussed these impacts. While AI's efficiency and cost-saving benefits will take time, the demand for equipment, electricity, and borrowing is already here. If this demand continues to push prices higher, it will make it harder for the Fed to cut interest rates. One @Gate, trading more markets