#chipflation

The post Federal Reserve Inflation Concerns Over AI-Driven Chipflation appeared on BitcoinEthereumNews.com. Something unusual is happening inside the Federal Reserve — and it goes well beyond the usual debate over a quarter-point move. Minutes from the central bank’s June 16-17 meeting, released Wednesday, reveal that a growing number of policymakers are pointing at the artificial intelligence boom as a direct driver of Federal Reserve inflation concerns, complicating what was already a fractious internal debate over where interest rates should go next. Key takeaways The Fed raised its year-end Personal Consumption Expenditures inflation projection from 2.7% to 3.6%, citing AI-driven demand as a key factor. The benchmark rate was held at 3.5%–3.75% in June, but future hikes remain firmly on the table. Nine of 18 Fed committee members expect at least one rate hike before the end of 2026. Markets put the probability of a hike at the July 29 meeting at 30.5%, per CME FedWatch; Polymarket