Fed's Kashkari Says AI Build-Out Is Driving Inflation and Expects One Rate Hike in 2026
Federal Reserve Bank of Minneapolis President Neel Kashkari said he has one interest rate increase penciled in for 2026, citing artificial intelligence development as a source of inflation. Kashkari stated that the labor market is not currently driving price pressures, which instead stem from supply constraints linked to the AI build-out.
Kashkari noted Thursday that AI-related spending is pushing up market interest rates and remaining inflationary in the near term. He expects the central bank to keep rates on hold throughout 2027 and added that signs of progress in the Middle East are not yet clear. His comments align with the economic projections released by the Federal Open Market Committee earlier this month.
From the sources (22 posts)
@financialjuiceFed's Kashkari: I see rates on hold in 2027.
@financialjuiceFed's Kashkari: I have one rate hike penciled in for 2026.
@firstsquawkFED'S KASHKARI: I HAVE ONE RATE HIKE PENCILED IN FOR 2026 || I SEE RATES ON HOLD IN 2027 || INFLATION MOVE-UP NOT JUST ABOUT OIL, MIDDLE EAST
@firstsquawkKASHKARI: CONCERNED ABOUT INFLATION, ESPECIALLY IN SERVICES || SEEING SOME SIGNS OF LIFE IN LABOR MARKET || IT WAS APPROPRIATE TIME TO RESET FOMC STATEMENT || GOING TO HAVE TO SEE HOW NO FORWARD GUIDANCE WORKS
@zerohedge*KASHKARI: I SEE RATES ON HOLD IN 2027 *FED'S KASHKARI: I HAVE ONE RATE HIKE PENCILED IN FOR 2026
@deitaone*FED'S KASHKARI: I HAVE ONE RATE HIKE PENCILED IN FOR 2026
@stockmktnewz🇺🇸 FED'S KASHKARI JUST SAID: - I HAVE ONE RATE HIKE PENCILED IN FOR 2026
@polymarketmoneyJUST IN: Fed’s Kashkari says he has “one rate hike penciled in” for 2026.
@wallstengineFED'S KASHKARI: I HAVE ONE RATE HIKE PENCILED IN FOR 2026; I SEE RATES ON HOLD IN 2027
@financialjuiceFed's Kashkari: The Fed may need to raise rates amid broad inflation.
@businessFederal Reserve Bank of Minneapolis President Neel Kashkari said signs of widespread inflation led him to pencil in one interest-rate increase for this year in the central bank’s economic projections released earlier this month. https://t.c
@financialjuiceFed's Kashkari: I am not seeing the all-clear sign in the Middle East.
@firstsquawkKASHKARI SAYS NOT SEEING ALL-CLEAR SIGN IN THE MIDDLE EAST
@zerohedge*KASHKARI: INFLATION DRIVEN BY SUPPLY ISSUES, INCLUDING AI-BUILD Here we go: AI as source of inflation
@financialjuiceFed's Kashkari: The labor market is not causing inflation right now. Inflation is being driven by supply issues, including the AI-buildout.
@financialjuiceFed's Kashkari: In the near term, the AI build-out is clearly inflationary.
@financialjuiceFed's Kashkari: AI is probably pushing up market interest rates.
@financialjuice🔴 Fed's Kashkari: The AI build-out probably means that the Fed will have to raise rates.
@zerohedge*KASHKARI: AI PROBABLY PUSHING UP MARKET INTEREST RATES So, record flood of IG debt to fund hyperscalers capex is raising cost of capital for everyone else. In other words, AI has displaced Fed as source of global credit impulse.
@firstsquawkFED'S KASHKARI SAYS THAT AI DEVELOPMENT IS OBVIOUSLY INFLATIONARY IN THE SHORT TERM.
@firstsquawkFED'S KASHKARI SAYS AI MAY BE INCREASING MARKET INTEREST RATES, BUT REMAINS OPTIMISTIC ABOUT JOB PROSPECTS.
@firstsquawkFED'S KASHKARI SAYS AI DEVELOPMENT MAY REQUIRE INTEREST RATE HIKES.