A post by @FirstSquawk on X.

St. Louis Fed President Alberto Musalem said excess inflation is being driven by both supply and demand factors, and that artificial intelligence will eventually deliver much higher productivity. He also noted that the ongoing build-out of data centers is contributing to strong demand in the economy. The remarks matter because they signal that policymakers see inflation pressures as persistent and broad-based rather than purely demand-driven, which could shape the pace of future rate decisions. Investors will watch upcoming inflation and productivity data, along with data-center capital spending, for confirmation of whether AI-driven efficiency gains materialize.