Fed’s Barkin: AI investments contributing to near-term inflation pressures

Federal Reserve Bank of Richmond President Thomas Barkin said AI-related investment is adding to near-term inflation pressures, suggesting the central bank may weigh further rate hikes. The remark ties the AI capital-spending boom to monetary policy at a time when the Fed is already balancing growth risks against sticky prices. It matters because higher-for-longer rates would ripple through risk assets, including crypto, by keeping financing costs elevated. Traders will watch upcoming inflation prints and Fed commentary for signs of whether AI-driven demand shifts the rate path.