Fed’s Hammack cites AI build-out as source of price pressures

Cleveland Fed President Beth Hammack identified the AI infrastructure build-out as a source of price pressures that could keep interest rates elevated for longer. The remarks signal that central bankers view AI-driven capital spending as a potential inflationary force, complicating the path toward monetary easing. Sustained high rates would weigh on growth and shape investment strategies across risk assets, including crypto. Markets will watch upcoming inflation data and Fed commentary for confirmation that AI spending is feeding into broader price measures.