Fed Says AI Data Center Buildout Is Driving Up Inflation

The Federal Reserve now acknowledges that the AI data center boom is adding to inflationary pressure in the US. Chicago Fed president Austan Goolsbee said prices are rising beyond data center components and adjacent industries, calling it "old-fashioned overheating demand."

• Fed links rising prices to surging AI infrastructure investment
• Goolsbee: price growth spreads beyond data center industries
• Fed raised rates in September for the first time in three years
• Markets expect another rate hike later this month