AI infrastructure capex spending may be causing a generalized rise in prices in the near term despite long-term deflationary potential

"Cook said she believes the effects of tariffs imposed by the Trump administration on prices are already subsiding, and that energy increases and AI component price increases are set to come down. She noted 'For these three reasons, I felt it was appropriate not to change rates while we see how these factors evolve.'"

"Another debate that could come up during the press conference: Is the AI capex boom causing a generalized rise in prices? Fed Governor Lisa Cook flagged this as a potential risk in a mid-July speech."