AI infrastructure boom adds to US inflation risks, warns former Fed’s Evans

Former Chicago Fed President Charles Evans warned that the AI infrastructure boom could add to US inflation risks, potentially complicating the Federal Reserve's rate path. The surge in data-center and computing investment tied to AI may lift demand-side price pressures, which could prompt the Fed to keep policy tighter or raise rates further. That matters for risk assets, including crypto, because higher-for-longer rates tend to tighten liquidity and weigh on valuations across digital-asset markets. Investors should watch upcoming US inflation prints and Fed commentary for signs that AI-driven capex is feeding into broader price measures.