The post Fed flags AI inflation risk as rate hike odds climb above 59% appeared on BitcoinEthereumNews.com.
The Federal Reserve has warned that strong artificial intelligence-related demand could keep inflation elevated, while market pricing for a U.S. interest rate hike this year has climbed above 59%. Summary Fed minutes identified AI demand, tariffs, and Middle East tensions as potential drivers of persistent inflation. Most Fed officials said higher rates may be needed if inflation stays above the 2% target. Polymarket now prices a 59% chance of a Fed rate hike this year, while July pause odds remain at 69.5%. According to the minutes of the Federal Reserve’s June Federal Open Market Committee meeting, policymakers discussed several paths for monetary policy depending on how inflation and the labor market develop. One of the scenarios considered involved inflation staying above the central bank’s 2% target despite a stable labor market, driven by strong AI-related demand, the confl
The post The World’s Biggest Investor Is Trimming AI Stocks. Should You Worry? appeared on BitcoinEthereumNews.com.
BlackRock has pulled back on AI stocks most directly tied to the artificial intelligence (AI) boom, Chief Investment Officer of Global Fixed Income Rick Rieder said Wednesday. He described the sales as rebalancing, not a reversal. BlackRock manages more client assets than any rival, so its positioning attracts unusual attention. Investors are already debating whether the market’s concentration in a few AI winners has gone too far. BlackRock AI Stocks Pullback Reflects Selectivity Speaking on CNBC, Rieder said his team trimmed positions in companies whose earnings depend most heavily on the AI buildout. In a separate clip, he added that the firm also cut a notable slice of its overall equity exposure. He framed the shift as trimming winners rather than exiting the theme. “Some of the companies that are more directly tied to AI, we’ve pulled back a bit and rebalanced a bit,
The Fed's potential rate hikes could tighten liquidity, impacting crypto markets and prompting shifts in capital allocation strategies.
The post Federal Reserve minutes reveal support for rate increases, Bitcoin drops 2.7% appeared first on Crypto Briefing.
The post Fed Minutes Flag AI Demand as Inflation Risk as Rate Hike Remains on the Table appeared on BitcoinEthereumNews.com.
The latest Fed minutes have highlighted the risk that AI demand could have on inflation as the Fed continues to hold rates steady. The minutes also signaled that a hike is still on the cards if inflation remains elevated and fails to fall to the 2% target. Fed Minutes Flag Inflation Risk Driven By AI Demand The Federal Reserve minutes from the June FOMC meeting highlighted multiple scenarios regarding the outlook for monetary policy. Most participants pointed to scenarios in which the labor market remains stable while inflation remains elevated due to strong AI-related demand, the Middle East conflict, or the effects of tariffs. In such scenarios, almost all of the participants indicated that some policy firming would be necessary to return to their 2% target. Furthermore, the Fed minutes showed that most participants commented on scenarios in which inflationary
AI-driven inflation risks could lead to prolonged high interest rates, impacting economic growth and dampening risk asset attractiveness.
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The post Bitcoin Price Prediction as Trump Warns of More U.S. Strikes on Iran appeared on BitcoinEthereumNews.com.
Bitcoin remained under pressure as U.S.-Iran tensions pushed traders away from risk assets. The BTC price slipped below $62,000 after losing 3.17% in 24 hours to $61,777. The move tracked a wider market pullback, as total crypto market capitalization fell 3.08% to $2.13 trillion. Selling pressure increased after President Donald Trump said the Iran ceasefire was over. He also warned that the U.S. could launch more strikes after accusing Tehran of violating prior agreements. The latest comments unsettled global markets and lifted oil prices. The disruption of supply in case of tension that poses a threat to shipping routes along the Strait of Hormuz was feared by the traders. 🚨 Markets Slide as US-Iran Tensions Escalate President #Trump declared the U.S.-Iran #ceasefire is over, triggering a broad #market selloff.#Oil jumped 5%, major U.S. stock indexes fell, and the crypt
AI demand's inflationary impact may prompt tighter Fed policies, affecting economic stability and market expectations for future rates.
The post Fed minutes highlight AI demand as new inflation risk appeared first on Crypto Briefing.
Persistent inflation could lead to tighter monetary policy, impacting economic growth, borrowing costs, and financial market stability.
The post Fed officials lean toward rate hikes if inflation persists appeared first on Crypto Briefing.
The Federal Reserve has warned that strong artificial intelligence-related demand could keep inflation elevated, while market pricing for a U.S. interest rate hike this year has climbed above 59%. According to the minutes of the Federal Reserve’s June Federal Open…
