{"id":875069,"date":"2026-10-08T11:30:14","date_gmt":"2026-10-08T11:30:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/875069\/"},"modified":"2026-10-08T11:30:14","modified_gmt":"2026-10-08T11:30:14","slug":"fed-sees-data-center-boom-as-behind-rising-prices","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/875069\/","title":{"rendered":"Fed Sees Data Center Boom as Behind Rising Prices"},"content":{"rendered":"<p class=\"storyParagraph\">&#13;<br \/>\n                                        The data center debate has reached the Federal Reserve. <a href=\"https:\/\/www.federalreserve.gov\/newsevents\/pressreleases\/monetary20261007a.htm\" rel=\"nofollow noopener\" target=\"_blank\">Minutes<\/a> from the Fed&#8217;s September meeting released Wednesday indicate officials now see the AI infrastructure boom, more than tariffs, as a key force keeping goods prices elevated. Policymakers cited a rush of borrowing to fund data centers, chips, and related hardware as &#8220;surging AI-related investments&#8221; that could push demand beyond what businesses can supply, driving prices higher, the <a href=\"https:\/\/www.washingtonpost.com\/business\/2026\/10\/07\/datacenter-boom-is-pushing-prices-higher-fed-officials-said\/\" rel=\"nofollow noopener\" target=\"_blank\">Washington Post <\/a>reports.&#13;\n                                    <\/p>\n<p class=\"storyParagraph\">&#13;<br \/>\n                                        They noted that core goods prices\u2014excluding food and energy\u2014are still rising at a brisk pace, even as the impact of past tariff hikes fades. The Fed now expects inflation to stay above its 2% goal until 2029. Just a year ago, AI was barely mentioned in Fed discussions; this year, it&#8217;s central, with officials betting it will eventually boost productivity and output, even as they admit they don&#8217;t know yet how big or how fast those gains will be. The minutes showed a split on the reasoning for raising interest rates, per <a href=\"https:\/\/www.reuters.com\/business\/fed-policymakers-divided-over-rate-hike-logic-september-minutes-show-2026-10-07\/\" rel=\"nofollow noopener\" target=\"_blank\">Reuters<\/a>. &#8220;Some participants&#8221; backed an increase to counter the effect of rising energy prices, while others contended that demand-driven inflation makes higher interest rates necessary.&#13;\n                                    <\/p>\n","protected":false},"excerpt":{"rendered":"&#13; The data center debate has reached the Federal Reserve. Minutes from the Fed&#8217;s September meeting released Wednesday&hellip;\n","protected":false},"author":2,"featured_media":875070,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[28,7258,2800,2402,1052,759],"class_list":["post-875069","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-data-centers","tag-federal-reserve","tag-inflation","tag-prices","tag-tariffs"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/875069","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=875069"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/875069\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/875070"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=875069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=875069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=875069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}