THE FED MINUTES OF ITS JULY MEETING REFER TO AI AND CONCERN ITS IMPACT ON INFLATION AND FINANCIAL STABILITY

THE MINUTES OF THE JULY MEETING OF THE FEDERAL RESERVE SHOW THAT POLICYMAKERS MADE 18 REFERENCES TO AI IN 15 PARAGRAPHS DISCUSSING ECONOMIC PROSPECTS. OFFICIALS WARNED THAT AI INFRASTRUCTURE INVESTMENT BOOSTED AGGREGATE DEMAND AND INCREASED INFLATIONARY PRESSURES, WHILE FEARING THAT AI CAPITAL EXPENDITURE DEPENDED ON NON-BANK AND REGIONAL BANK FINANCING, AND THAT IF AI ASSET PRICING WERE REVERSED, FINANCIAL INSTITUTIONS WOULD BE HIT. IT WAS NOTED IN THE PROCEEDINGS THAT THERE WAS UNCERTAINTY ABOUT THE IMPACT OF AI ON THE EMPLOYMENT MARKET AND THAT THE CONSTRUCTION OF THE DATA CENTRE HAD CONTRIBUTED TO THE SHORTAGE OF SOME POSTS AND THAT OFFICIALS HAD DOUBTS ABOUT THE TIMING OF AI ' S PRODUCTIVITY ENHANCEMENT。