Fed blames AI boom for rising inflation

FOMC June meeting minutes released July 8 indicate the Fed is wary that the AI boom could contribute to rising inflation, implying no zero Federal funds rate cuts in 2026. The pushback against rate cuts is likely to weigh on crypto sentiment and risk appetite, as traders recalibrate expectations for lower discount rates.

Analysis

FOMC June meeting minutes released July 8 indicate the Fed is wary that the AI boom could contribute to rising inflation, implying no zero Federal funds rate cuts in 2026. The pushback against rate cuts is likely to weigh on crypto sentiment and risk appetite, as traders recalibrate expectations for lower discount rates.