Fed Chair Warsh Wants Answers on AI Inflation—and Bitcoin May Feel the Impact
Summary
Federal Reserve Chair Kevin Warsh will host a public forum on AI’s effects on inflation, productivity and employment. Policymakers disagree over whether AI will eventually lower costs or whether data-center demand for power, chips and labor is already driving prices up. The outcome could shape interest-rate policy and, indirectly, demand for Bitcoin and other risky assets. AI also competes with Bitcoin mining for electricity: Hyperscale Data closed a Michigan mining operation to serve an AI customer in a deal potentially worth over $1.2 billion. The forum will not decide the Fed’s next rate move, but may reveal how officials view AI’s economic effects.
