Fed's Barkin: AI Investment Surge Is Inflationary; Favors Gradual Rate Path

What we know

Richmond Fed President Barkin flagged that the AI investment boom is inflationary via supply chain pressure, and that businesses are broadly facing cost pressures and plan to pass them to customers — several accounts on X. He noted consumer spending resilience has been a surprise given flat incomes. The Fed has signaled a 'gradual approach,' with the question being pace — an account on X. Meanwhile the BOJ declared victory over deflation and accelerated ETF dumping to the fastest pace in 43 years — another account on X.